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kifflom [539]
3 years ago
14

You are evaluating a fund that had an annual average return of 7.2%. During that time, the average risk-free rate was 1.5% and t

he average market return was 8%. If the fund's beta is 0.8, what was its alpha? Answer in percent, rounded to one decimal place (e.g. 4.32% = 4.3).
Business
1 answer:
PilotLPTM [1.2K]3 years ago
7 0

Answer:

Risk free rate(Rf) = 1.5%

Market return(Rm) = 8%

Beta(β) = 0.8

ER(P) = Rf  + β(Rm – Rf)

ER(P) = 1.5 + 0.8(8-1.5)

ER(P) = 1.5 + 0.8(6.5)

ER(P) = 1.5 + 5.2

ER(P) = 6.7%

Alpha = Annual average return - ER(P)

         = 7.2% - 6.7%

         = 0.5%

Explanation:

In this case, we will calculate the expected return on the stock based on CAPM. Thereafter, we will calculate alpha by deducting the expected return from annual average return.

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Anni [7]

Answer:

(D) internal locus of control; external locus of control

Explanation:

According to the behavioral descriptions from both Ryan and Micheal in the question, we can say that In marketing terms, Ryan is said to have an internal locus of control and Micheal has an external locus of control.

Internal locus of control is when people believe that they have control over the outcome of events in their lives, while people with an External locus of control usually blame an external force (higher power) for all the events happening in their lives.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
When you use the direct organizational plan for a routine message, you present the details before the primary idea?
12345 [234]
<span>The direct organizational plant for a routine message requires that you present the primary ideas first and then any supporting evidence. This plan emphasizes deduction, understanding the implications (details) of a central idea rather than presenting particulars first building toward the central idea of a message.</span>
4 0
3 years ago
he Alford Group had 220,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shar
cricket20 [7]

Answer:

Consider the following calculation

Explanation:

1. Determine the 2018 EPS.

EPS = Net Income / Weighted Average number of shares

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares = 2,20 – (24x10/12) + (24x2/12) + (96x1/12)

= 2,52 Shares

EPS 2018 = $15,90 / 2,52 Shares

= $6.31 per share

2. Determine the 2019 EPS.

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares

=[ 2,20 – 24 + 24 + 96 ] x 2 Stock Split

= 6,32 Shares

EPS 2019 = $15,90 / 6,32 Shares

= $2.52 per share

3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares

= 2,520 x 2 Stock split

= 5,04 Shares

EPS = $15,90 / 5,04

= $3.15 per share

8 0
3 years ago
On January 1, 2021, G Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that
podryga [215]

Answer:

$27,720

Explanation:

Calculation for the amount of G's 2022 salaries expense related to 2021 vacation time

First step is to find the Total salary expenses

G's employees earned average of $720 per week

Total vacation week in 2021 were not taken 550 week

Hence,

Total salary expense of G corporation = $720 per week × 550

Total salary expenses = $396,000

Second step is to calculate the salaries expense amount related to 2021 vacation time

Using this formula

Salaries Expense of G's 2022 = Total salary expenses × Wage rate

Let plug in the formula

Salaries Expense of G's 2022 = $396,000 × 7%

Salaries Expense of G's 2022

The amount of G's 2022 salaries expense = $27,720

Therefore the amount of G's 2022 salaries expense related to 2021 vacation time will be $27,720

3 0
3 years ago
In 2019, Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income. Wesley, age
asambeis [7]

He may file Form 1040.

Explanation:

Form 1040 is the IRS standard form which is used by individual taxpayers to file their annual tax reports.

Form 1040 is the IRS tax form used mostly for personal tax returns submitted by US citizens by the federal government. Form 1040 is a form. The method estimates the taxpayer's gross taxable income and specifies how much the government has to pay or repay.

Who can file? If a person passes the Substantial Appearance Test or the Green Card Test, but some cases exist; people who have a taxable earnings in the US, but refuse to meet the obligation to be resident aliens, must register for taxation purposes for non-resident aliens.

3 0
3 years ago
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