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IrinaK [193]
3 years ago
12

Congratulations! Your portfolio returned 17.5​% last​ year, 2.2​% better than the market return of 15.3​%. Your portfolio had a

standard deviation of earnings equal to 21​%, and the​ risk-free rate is equal to 3.2​%. Calculate​ Sharpe's measure for your portfolio. If the​ market's Sharpe's measure is 0.31​, did you do better or worse than the market from a​ risk/return perspective?
Business
1 answer:
Zinaida [17]3 years ago
8 0

Answer:

0.681 and better

Explanation:

The formula to compute the Sharpe measure is shown below:

Sharpe ratio = (Portfolio return − Risk-free rate) ÷ (Standard deviation of portfolio return )

= (17.5% - 3.2%) ÷ (21%)

= 0.681

Simply we deduct the risk free return from the portfolio return and divide it by the standard deviation of portfolio return

And the market Sharpe measure would be 0.31 and ours Sharpe measure would be 0.681 which reflect the better

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Explanation:

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Scenario 1: Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximu
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Answer:

<em>The question is incomplete, complete question is as follows:</em>

Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.

Shift the appropriate curve on the graph to reflect this change.

This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.

Explanation:

<em>To decrease.</em>

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The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.

Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.

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3 years ago
An adjusting entry was made on year-end December 31 to accrue salary expense of $1,500. Assuming the company does not prepare re
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Answer and Explanation:

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Answer:

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You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the ma
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Answer:

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