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alex41 [277]
3 years ago
9

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: Sooner Market Portfo

lio Average return 20 % 11 % Standard reviations of returns 44 % 19 % Beta 1.8 1.0 Residual standard deviation 2.0 % 0.0 % The risk-free return during the sample period was 3%. Calculate the Jensen measure of performance evaluation for Sooner Stock Fund. Multiple Choice 4.00% 2.6% 8.67% 31.43% 37.14%
Business
1 answer:
Tom [10]3 years ago
3 0

Answer:

The Jensen measure of performance evaluation for Sooner Stock Fund is 2.6%

Explanation:

In order to calculate the  the Jensen measure of performance evaluation for Sooner Stock Fund we would have to calculate Jensen's Alpha as follows:

Jensen's Alpha = R(i) - [R(f) + {B x (R(m) - R(f))}]

Jensen's Alpha= 20% - [3% + {1.8 x (11% - 3%)}]

 Jensen's Alpha= 20% - [3% + 14.4%] = 20% - 17.4%

  Jensen's Alpha= 2.6%

The Jensen measure of performance evaluation for Sooner Stock Fund is 2.6%

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Answer:

4.28 grams

Explanation:

The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by the formula:

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Given that:

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P(x < 5.1) = 95%

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3 years ago
Kent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The D
Burka [1]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

As per §117(b)(2) a qualified scholarship that is solely used for qualified tuition and related expenses like fees, books and supplies that is necessary for such course in which admission is taken, related tuition fees and associated expenses are not taxable.

On the other side expenses on rooms and boarding are not qualified expenses so any amount spent on it is fully taxable. Another condition is that scholarship given should not be an exchange of service.

<em>You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  </em>

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Download xlsx
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3 years ago
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lidiya [134]

Answer:

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