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castortr0y [4]
2 years ago
8

A fund has a Beta of 1.25, Standard Deviation of 7%, and an expected return of 12%. If the risk free rate is 2%, calculate the T

reynor Index.
Business
1 answer:
elixir [45]2 years ago
7 0

Answer:

the Treynor Index is 0.08

Explanation:

The computation of the Treynor Index is shown below:

We know that

Treynor Index is

= (Portfolio return - risk free rate of return) ÷ beta

= (12% - 2%) ÷ 1.25

= 0.08

Hence, the Treynor Index is 0.08

Basically the above formula should be applied for the same

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Ruth executes a will in 2012 naming her nephew stan as sole beneficiary. in 2014, ruth executes another will, naming her niece t
Slav-nsk [51]

Stan and Tammy will share the estate in equal shares. You are able to have as many beneficiaries as you name, due to this and no change in the first will, both will be heirs to the estate. If Ruth were to have revoked the first will, then it would have left Tammy the sole beneficiary.

5 0
3 years ago
Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the
Andrews [41]

Answer:

The correct answer is A. Both Laura and Cassie are correct.

Explanation:

Since Laura says that the present value of $ 700 to be received one year from today if the interest rate is 6 percent is less than the present value of $ 700 to be received two years from today if the interest rate is 3 percent, and Cassie says that $ 700 saved for one year at 6 percent interest has a smaller future value than $ 700 saved for two years at 3 percent interest, to determine who is right, the following calculations must be performed:

700 x 1.06 = 742

700 x 1.03 ^ 2 = 742.63

Therefore, both Laura and Cassie are correct in their claims.

5 0
3 years ago
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil
8090 [49]

Answer:

$16,667

Explanation:

Given that

Cash flows = $1,000

Growth rate = 6%

Interest rate = 12%

So by considering the above information, the amount would be

Amount = Cash flows ÷ (Interest rate - growth rate)

= $1,000 ÷ (12% - 6%)

= $16,667

We simply applied the above formula so that the amount could come by considering the given information

3 0
3 years ago
The manager of a large hotel refuses to rent a room to a blind person with a guide dog. What California Fair Housing law has the
Anvisha [2.4K]

Answer:

<u>Unruh Civil Rights Act</u>

Explanation:

Remember, in the United States individual states often enact their own laws. One such law is the Unruh Civil Rights Act that protects persons with disabilities.

By his actions the Hotel Manager has violated the California fair housing law under the Unruh Civil Rights Act which mandates that;

All persons irrespective of their disability are <em>entitled</em> to full and equal accommodations or fair housing privileges or services in all business establishments of <em>every</em> kind whatsoever.

3 0
3 years ago
A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw m
kiruha [24]

Answer:

<u>Omaha would produce a higher Income.</u>

Explanation:

170 Sales revenue per unit

Omaha

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

170 - 20 = 150

Contribution \: per \: unit \times units \: sold = Total \: Contribution \: Margin

9,400 x 150 = 1,410,000

fixed cost (900,000)

<em>Income 510,000</em>

Kansas City

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

170 - 35 = 135

Contribution \: per \: unit \times units \: sold = Total \: Contribution \: Margin

10,000 x 135 = 1,350,000

fixed cost (1,000,000)

<em>Income 350,000</em>

4 0
3 years ago
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