Answer:
The extra return above the risk-free rate adjusted for total risk
Explanation:
The Sharpe Ratio was developed by William Sharpe, and it is used by investors to guage the return in an investment against risk.
To calculate it we find the excess return above risk free rate And divide it by the total risk.
This isolates the returns that are attributed to risk taking activity.
A risk free transaction for example is the yield on government treasury bills.
We use only returns associated with risk to get a better picture of risk adjusted return. The higher the ratio the better.
Answer:
Explanation:
The journal entry is shown below:
1. Accounts receivable A/c Dr $160
To Sales discounts forfeited $160
(Being sales discount is recorded)
The computation of the sales discount is shown below:
= (Sales value - payment made) × discount rate
= ($40,000 - $24,000) × 1%
= $160
2. Cash A/c Dr $16,000
To Accounts receivable A/c $16,000
(Being cash is received)
Answer:
shift demand and supply for loanable funds to the right (up), increasing interest rates.
Explanation:
According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.
As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.
Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out
Answer:
c.credit to Wages Payable for $6,300.
Explanation:
The journal entry to record the wages expense is shown below;
Wages expense dr ($10,500 × 3 ÷ 5) $6,300
To Wages payable $6,300
(being the wages expense is recorded)
Here the wages expense is debited as it increased the expense and credited the wages payable as it increased the liabilities
<span>The goal of giving the debtor a fresh start is accomplished through</span><span> releasing debtors from personal liability for specific debts and protecting them from collection efforts.</span>
