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2 years ago

Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?

Business

1 answer:

charle [14.2K]2 years ago

3 0

Answer: 8%

Explanation:

Reward to risk ratio = (Expected return - Risk free rate) / Beta

Expected return = Risk free rate + Beta * ( Market return - Risk free rate)

= 4.4% + 1.2 * (12.4% - 4.4%)

= 14%

Reward to risk ratio = (14% - 4.4%) / 1.2

= 8%

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The Reserve Bank's responsibilities include formulating and implementing monetary policy, promoting financial stability, issuing banknotes, providing banking services to government, operating the high-value payments system, managing Australia's foreign reserves and setting payments system policy.

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2 years ago

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Debbie Brooks and Martha Tingstrom lived together. Tingstrom handled their finances. For five years, Brooks did not look at any

Vladimir [108]

Answer:

Debbie Brooks is the one who will suffer the loss for the checks paid with Brook's forged signature.

Explanation:

Debbie Brooks is the one who will suffer the loss for the checks paid with Brook's forged signature because Brooks was supposed to be checking the statement regarding her accounts frequently . By that, she could have discovered that Tingstrom had taken $85,000 from her checking account with Transamerica Financial Advisors and hence be able to sue her.

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3 years ago

Please help

Andrew [12]

Answer: It’s research the issues

Explanation:

The other answer is wrong

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2 years ago

in supply chain The competitive characteristics that persuade a customer to choose one company's products over those of another

Stella [2.4K]

Answer:

correct answer is Order winner

Explanation:

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3 years ago

A 27-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.00% (3.000% of face value every six months). The rep

nikdorinn [45]

Answer:

(A) $1,055.35 (B) $2,180.53 (C) $780.07 (D) $412.08.

Explanation:

The tenor of the bond is 27 years i.e. (27 * 2=) 54 periods of 6 months each (n).

Face Value (F) = $1,000

Coupon (C) = 6% annually = 3% semi annually = (3% * 1000 face value) = $30.

The Present Value (PV) of the Bond is computed as follows.

PV of recurring coupon payments + PV of face value at maturity

= $\frac{C(1-(1+r)^{-n}) }{r} + \frac{F}{(1+r)^{n}}$

A) Yield = 5.6% annually = 2.8% semi annually.

$PV = \frac{30(1-(1.028)^{-54}) }{0.028} + \frac{1,000}{(1.028)^{54}}$

= 830.25 + 225.10

= $1,055.35.

B) Yield = 1% annually = 0.5% semi annually.

$PV = \frac{30(1-(1.005)^{-54}) }{0.005} + \frac{1,000}{(1.005)^{54}}$

= 1,416.64 + 763.89

= $2,180.53.

C) Yield = 8% annually = 4% semi annually.

$PV = \frac{30(1-(1.04)^{-54}) }{0.04} + \frac{1,000}{(1.04)^{54}}$

= 659.79 + 120.28

= $780.07.

D) Yield = 15% annually = 7.5% semi annually.

$PV = \frac{30(1-(1.075)^{-54}) }{0.075} + \frac{1,000}{(1.075)^{54}}$

= 391.95 + 20.13

= $412.08.

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2 years ago