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nataly862011 [7]
3 years ago
8

A risky fund has an expected return of 17% and standard deviation of 25%. The risk-free rate is 9%. The expected return of the o

ptimal complete portfolio is 12%. The Sharpe ratio of the optimal complete portfolio is:
Business
1 answer:
Marrrta [24]3 years ago
4 0

Answer:

the Sharpe ratio of the optimal complete portfolio is 0.32

Explanation:

The computation of the sharpe ratio is shown below:

= (Return of portfolio - risk free asset) ÷ Standard deviation

= (17% - 9%) ÷ 25%

= 8% ÷ 25%

= 0.32

Hence, the Sharpe ratio of the optimal complete portfolio is 0.32

We simply applied the above formula

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What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique
Debora [2.8K]

The method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action is called as Devils Advocacy.

<h3>What is Devils Advocacy?</h3>

Devils Advocacy refers to the method in which the person provokes the other person to have arguments and debate with the other. It is done to test the other person strength to make the strong arguments.

It can be done for the right decision when to correct the thinking of the other person also to have the racial approach to the situation.

Learn more about Strategic decision Making here:

brainly.com/question/5803344

#SPJ1

6 0
2 years ago
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 16,000, $7 par, common sha
Otrada [13]

Answer:

See the answers and explanation below.

Explanation:

a. the necessary journal entries assuming a small (10%) stock dividend

<u>Date       Details                                                           Dr ($)            Cr ($)</u>

Sept. 1    Stock Dividends (16,000 * 36 * 10%)               57,600

              Common Stock (16,000 * 7 *10%)                                      11,200

              Additional Paid-in Capital - Common Stock                    46.400

<u><em>               To record a small (10%) stock dividend on common stock.    .</em></u>

b. the necessary journal entries assuming a large (100%) stock dividend

<u>Date       Details                                                          Dr ($)            Cr ($)</u>

Sept. 1    Stock Dividends (16,000 * 7 * 100%)              112,000

              Common Stock (16,000 * 7 *10%)                                      112,000

<u><em>               To record a large (100%) stock dividend on common stock.   .</em></u>

c. the necessary journal entries assuming a 2-for-1 stock split.

"No journal entry required"

Note: Although no journal entry is required here but the number of common stock will increase to 32,000 (i.e. 16,000 * 2 = 32.00).

6 0
3 years ago
Englewood Company has an opportunity to produce and sell a revolutionary new smoke detector for homes. To determine whether this
Alchen [17]

Answer:

1) Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from the sale of the smoke detectors for each year over the next 12 years.

year              net cash flow

0                   -$140,000

1                    ($20 x 4,000) - $70,000 - $127,500 + $7,500 = -$110,000

2                   ($20 x 7,000) - $70,000 - $127,500 + $7,500 = -$50,000

3                   ($20 x 10,000) - $50,000 - $127,500 + $7,500 = $30,000

4                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

5                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

6                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

7                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

8                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

9                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

10                  ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

11                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

12                  ($20 x 12,000) - $40,000 - $127,500 + $7,500 + $40,000 +

                    $10,000 = $130,000

2) Using the data computed in (1) above and other data provided in the  problem, determine the net present value of the proposed investment.

using a financial calculator, the NPV = -$56,801.13

3) Would you recommend that Englewood Company accept the smoke detector as a new product?

Since the NPV is negative, the project should be rejected.

8 0
3 years ago
Madzinga's Draperies manufactures curtains. A certain window requires the following:
Degger [83]

Answer:

Results are below.

Explanation:

<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>

<u></u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5 - 4.9)*14,000

Direct material price variance= $1,400 favorable

Actual price= 68,600/14,000= $4.9

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (1,500*10 - 14,000)*5

Direct material quantity variance= $5,000 favorable

<u>To calculate the direct labor efficiency and rate variance, we need to use the following formulas:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (5*1,500 - 7,600)*10

Direct labor time (efficiency) variance= $1,000 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (10 - 10.5)*7,600

Direct labor rate variance= $3,800 unfavorable

Actual rate= 79,800 / 7,600= $10.5

6 0
2 years ago
B. F. Skinner would argue that "getting a paycheck on Friday" reinforces a person for coming to work on Friday but would not rei
Elza [17]

Answer:(B) immediate reinforcement

Explanation:

Immediate reinforcement, on the other hand, leads to reinforcement of desired behavior

6 0
3 years ago
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