Answer:
0.5
Explanation:
A portfolio has 21% standard deviation
The return is 16%
T-bills were paying 5.5%
Therefore the Sharpe ratio can be calculated as follows
= 16-5.5/21
= 10.5/21
= 0.5
Hence the Sharpe ratio is 0.5
Answer: Average profit
Explanation:
Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,
If sales are $10 and profits are $3, the profit margin would be:
= 3/10
= 30%
This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.
Answer:
In a job order cost system, it would be correct in recording the purchase of raw materials to debit
Raw Materials Inventory.
Explanation:
When materials are initially purchased, the cost is debited to the Raw materials inventory account and credited to either Cash or Accounts Payable, depending on the trade terms. When the materials are assigned to work in process, it is debited to Work in Process Inventory and to Jobs and credited to Raw materials Inventory. Finished Goods Inventory is only debited for completed jobs. Manufacturing Overhead is debited for all indirect costs.
Answer:
China
Explanation:
Calculation to determine which location would be most economical to produce the item
Using this formula
LaborCost per Unit=Labor Cost per Day/Production(units per day)
Let plug in the formula
Myanmar = 6 Laborers x $3/day = $18/day
Myanmar=$18/day/ 40 units
Myanmar= $0.45/unit
China = 10 Laborers x $2/day = $20/day
China= $20/day/ 45 units
China= $0.444/unit
Montana = 2 Laborers x $60/day = $120/day
Montana= $120/day/100 units
Montana = $1.20/unit
Therefore the location that would be most economical to produce the item is CHINA
Answer:
Ans. The equilibrium rate of return on a 1-year Treasury bond is 6.65% (please check the explanation)
Explanation:
Hi, well, this type of bonds exist so people can avoid the time value of money risk, in other words, to keep money save from inflation and provide a risk free return at the same time. From a part of the text I can tell that the person who wrote it wanted to add up the risk free rate and the inflation rate, that is 3.05%+3.60% =6.65%.
This is why I wrote this answer, but the truth is that since they are both effective rates (risk free rate and inflation), they need to be add as effective rates, that is:
Therefore
So the real equilibrium rate of return is 6.76%, but for the sake of the question, I wrote 6.65%.
Best of luck.
