Answer:
Sharpe ratio = 0.20
Treynor ratio = –0.005
Explanation:
Note: See the attached excel file for the calculations of average rate of returns, standard deviations and beta used in the calculation below.
a. Calculation of Sharpe ratio
Sharpe ratio refers to a investment measurement that employed to measure the an investment actual that has been adjusted for the risk associated with the investment.
Sharpe ratio can be calculated using the following formula:
Sharpe ratio = (Average fund rate - Average Risk Free rate) / Standard deviation of fund rate = (5.46% - 2.40%) / 15.05% = 0.20
a. Calculation of Treynor ratio
Treynor ratio refers to investment measurement that is calculated to show the risk of certain investments after the volatility of the market has been taking into consideration.
Treynor ratio can be calculated using the following formula:
Treynor ratio = (Average market return rate - Average Risk Free rate) / Beta = (1.96% - 2.40%) / 87.53% = –0.005
Answer:
Explanation:
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Answer:B.40.9%
Explanation:
If $675 spend on mortgage and his monthly income is $1650
So the percentage will be:
$675 / $1650 × 100
= 0.409 ×100
= 40.9%
Answer:
a. semi-autonomous
Explanation:
Semi autonomous has a dictionary meaning that states being independent to some defined extent.
In the given instance also Devon thinks that her colleagues or coworkers are somewhere between the two categories, that is up to a certain extent they are really independent in their views. While on the other hand, at some situations their views depend on the things like views of coworkers.
Thus, using the term that the coworkers are semi autonomous is correct as to the concern they can exercise their own powers in half way.