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Tju [1.3M]
3 years ago
5

Return on shareholders' equity indicates the percent of corporate earnings for each dollar of total equity invested in the corpo

ration, whereas the earnings-price ratio reflects the percentage earned for each dollar of Multiple choice question. preferred stock. retained earnings. average total stockholders' equity. market value of common stock.
Business
1 answer:
ANTONII [103]3 years ago
6 0

Answer:

market value of common stock.

Explanation:

The formula for earnings-price ratio is as follow

Earnings-price ratio = Earning Per share / Market value per share

This ratio determines the percentage of earnings as compared to each dollar of equity investment.

In this ratio, the equity investment is the market value of the share.

Hence the correct option is "market value of common stock."

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3 0
2 years ago
A portfolio with a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%. This portfolio had
jarptica [38.1K]

Answer: 0.3

Explanation:

The Sharpe ratio is simply used by organizations and investors in order to compare the return on an investment to its risk.

From the question, we are informed that a portfolio has a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%.

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