he expected return of a portfolio is 9.2%, and the risk-free rate is 2%. if the portfolio standard deviation is 15%, what is the reward-to-variability ratio of the portfolio? multiple choice
Answers
The reward-to-variability ratio of the portfolio is approximately 0.48.
The reward-to-variability ratio of a portfolio, also known as the Sharpe ratio, is a measure that quantifies the excess return of an investment per unit of risk.
Given the following information:
Expected return of the portfolio: 9.2%
Risk-free rate: 2%
Portfolio standard deviation: 15%
To calculate the reward-to-variability ratio:
Reward-to-Variability Ratio = (Expected Portfolio Return - Risk-Free Rate) / Portfolio Standard Deviation
Reward-to-Variability Ratio = (9.2% - 2%) / 15%
Reward-to-Variability Ratio = 7.2% / 15%
Reward-to-Variability Ratio ≈ 0.48
Therefore, the reward-to-variability ratio of the portfolio is approximately 0.48.
Correct Question :
The expected return of a portfolio is 9.2%, and the risk-free rate is 2%. If the portfolio standard deviation is 15%, what is the reward-to-variability ratio of the portfolio?
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Related Questions
What is a business opportunity?
Answers
Answer:
a packaged business investment that allows the buyer to begin a business.
Explanation:
If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation? Multiple Choice Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity remains unchanged. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would increase $38,000 and liabilities would decrease $38,000
Answers
The answer is Assets would decrease $38,000, liabilities would decrease $38,000, and equity remains unchanged.
In plain English, what is equity?In contrast to equality, the term "equity" denotes fairness and justice: While equality refers to giving everyone the same thing, equity entails realizing that we do not all start from the same place and that disparities must be acknowledged and corrected.
What do equity and example mean?Equity is the ownership of any asset once all liabilities related to the asset have been paid off. For instance, if you owe $10,000 on a car you own worth $25,000, you have $15,000 in equity in the asset. It is the worth or interest of the smallest class of investors in assets.
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Rina is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Rina has only 20 hours this week that she can devote to training. Each hour she spends swimming is an hour that she can't spend biking or running. Which basic principle of individual choice do these statements best illustrate?
A.Juanita can use time most efficiently by spending the same amounts of time on swimming, biking, and running.
B. People face trade-offs
C. People usually exploit opportunities to make themselves better off.
D. Juanita has an incentive to spend more time on swimming than on biking or running.
Answers
The basic principle of individual choice which these statements best illustrate is:
B. People face trade-offsWhat is Choice?This refers to the ability of a person to make selections based on what he wants and what he can purchase.
With this in mind, we can see that Rina is training for a triathlon and because of this, she undergoes rigorous training and she makes use of her time effectively and this is an example of People face trade-offs
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When you are making a financial decision, the most relevant tax rate is the ____ rate when the tax rate schedule is progressive.
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When you are making a financial decision, the most relevant tax rate is the marginal rate when the tax rate schedule is progressive.
The marginal tax rate should be considered while making financial decisions. The proportion of taxable income that is taxed for each extra dollar generated is known as the marginal tax rate. One kind of federal tax structure is the progressive tax.
Under the progressive tax system, people with greater taxable incomes pay more in taxes, while those in lower tax brackets pay less. The marginal tax rate increases as an individual's income move up the tax bracket scale.
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During January, Ajax Co. Incurs 1,850 hours of direct labor at an hourly cost of $11.80 in producing 1,000 units of its finished product. Ajax standard labor cost per unit of output is $22 (2 hours x $11.00). Compute the total, price, and quantity labor variances for Ajax Co. For January. Identify whether the variance is favorable or unfavorable?
Answers
Answer:
Std rate per hour: 11.00
Std hours = 1000*2 =2000
Actual hours = 1850
Actual rate = 11.80
Labor cost variance = Std cost - Actual cost
Labor cost variance = (2000*11) - (1850*11.80)
Labor cost variance = 170 Unfavorable
Labor rate variance = Actual hrs (Std rate - Actual rate)
Labor rate variance = 1850 *(11-11.80)
Labor rate variance = 1480 Unfavorable
Labor qty variance = Std rate (Std hrs-Actual hrs)
Labor qty variance = 11 (2000-1850)
Labor qty variance = 1650 Favorable.
Which of these methods will remove a custom tab stop?
A. Double-click the tab stop.
B. Triple-click the tab stop.
C. Click and drag the tab stop to the left edge of the Ruler.
D. Click and drag the tab stop off the Ruler.
Answers
Answer:
d. Click and drag the tab stop off the Ruler.
Explanation:
Nonconstant Growth Stock Valuation. Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield is 8%. Your company is about as risky as the average firm in the industry and just paid a dividend (Do) of $2.5. You expect that the growth rate of dividends will be 50% during the first year (90,1 = 50%) and 25% during the second year (91,2 = 25%). After Year 2, dividend growth will be constant at 5%. What is the required rate of return on your company's stock? What is the estimated value per share of your firm's stock? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number. rs:_____ % Po : $ ___
Answers
Required rate of return 11.98%. when the dividend discount model is based on the idea that the value of a stock is determined by the future cash flows that it generates for its shareholders in the form of dividends.
To calculate the required rate of return on the company's stock, we can use the dividend discount model.
The formula for the dividend discount model is:
Po = (Do x (1 + g1)) / (rs - g1)
where Po is the estimated value per share of the firm's stock, Do is the current dividend payment, g1 is the growth rate of dividends during the first year, and rs is the required rate of return.
Using the given values, we can plug them into the formula:
Po = (2.5 x (1 + 0.5)) / ( required rate of return - 0.5)
Next, we need to find out the value of required rate of return . To do this, we can use the constant growth rate formula:
required rate of return = D1 / Po + g
where D1 is the dividend payment in the next period, and g is the constant growth rate.
We know that after the first two years, the growth rate will be constant at 5%, so we can use this value for g. To find D1, we need to calculate the dividend payment for each of the next two years:
D1 = Do x (1 + g1) x (1 + g2)
D1 = 2.5 x (1 + 0.5) x (1 + 0.25) = $4.53125
Now we can use the constant growth rate formula to find required rate of return:
required rate of return = 4.53125 / Po + 0.05
We can rearrange this equation to solve for Po:
Po = 4.53125 / ( required rate of return - 0.05)
Substituting the first equation into this one, we get:
Po = (2.5 x (1 + 0.5)) / ((4.53125 / Po + 0.05) - 0.5)
Simplifying this equation, we get:
Po = $66.32
Therefore, the estimated value per share of the firm's stock is $66.32.
To find the required rate of return on the company's stock, we can use the constant growth rate formula again:
required rate of return = D1 / Po + g
required rate of return = 4.53125 / 66.32 + 0.05
required rate of return = 0.1198 or 11.98%
Therefore, the required rate of return on the company's stock is 11.98%.
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Between October 1787 and May of 1788, what did the leaders do?
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Between October 1787 and May of 1788, the leaders of the newly independent United States were involved in a series of debates and discussions regarding the ratification of the proposed United States Constitution.
What is Ratification?
Ratification is the act of formally approving or confirming a legal document or agreement.
In the context of the United States Constitution, ratification refers to the process by which the proposed Constitution was approved by the required number of states, thereby establishing it as the supreme law of the land.
During the ratification process, each state held a convention to consider the proposed Constitution, and a vote was taken to determine whether the state would ratify or reject it. The Constitution required ratification by at least nine of the thirteen states before it could go into effect.
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The
average collection float is $265,450 and the approximate discount
rate is 10%. What is the annual cost of float?
Answers
The annual cost of float is $26,545. To calculate this, multiply the average collection float ($265,450) by the approximate discount rate (10%).
To calculate the annual cost of float, follow these steps:
1. Convert the discount rate to a decimal by dividing it by 100: 10% ÷ 100 = 0.10
2. Multiply the average collection float by the discount rate in decimal form: $265,450 x 0.10 = $26,545
The annual cost of float represents the opportunity cost of not having immediate access to the funds due to the time taken for checks to clear or for payments to be processed.
In this case, the annual cost of float is $26,545, which is the amount of money the company could have potentially earned if they had immediate access to the funds and invested them at the given discount rate.
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Proactive and Reactive aggregate planning strategies are best associated with: A. Input and Output B. Make and Buy C. Quantitative and Qualitative D. Exact and Approximate E. Demand and Capacity options
Answers
Proactive and Reactive aggregate planning strategies are best associated with Demand and Capacity options. The correct answer is option e.
Aggregate planning is a process that helps organizations determine the optimal production levels and resources required to meet anticipated demand over a specific period. Proactive and Reactive strategies refer to different approaches used in aggregate planning to handle variations in demand and capacity.
Proactive strategy: This approach involves taking preemptive actions based on forecasts and expectations of future demand. Proactive strategies aim to align production capacity with anticipated demand by adjusting workforce, inventory levels, and production schedules in advance. It involves proactive decision-making to ensure that the organization is prepared to meet the projected demand.
Reactive strategy: This approach involves responding to variations in demand and capacity after they occur. Reactive strategies focus on managing unexpected changes in demand or capacity by making short-term adjustments. This can involve overtime or undertime scheduling, subcontracting, inventory adjustments, or other measures to address fluctuations in demand.
By considering these strategies, organizations can effectively balance their resources and capacities with fluctuating demand, ensuring efficient production and customer satisfaction.
The correct answer is option e.
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a bond yielded a real rate of return of 3.87 percent for a time period when the inflation rate was 4.75 percent. what was the actual nominal rate of return? group of answer choices 9.36 percent 8.80 percent 8.58 percent 8.60 percent 9.28 percent
Answers
The actual nominal rate of return is approximately 8.81 percent. Out of the given answer choices, 8.80 percent is the closest option.Option B
To find the nominal rate of return when given the real rate of return and the inflation rate, you can use the Fisher equation, which is: (1 + nominal rate) = (1 + real rate) * (1 + inflation rate). The student question provides the real rate of return as 3.87 percent and the inflation rate as 4.75 percent. First, convert these percentages to decimals: Real rate: 3.87 percent = 0.0387. Inflation rate: 4.75 percent = 0.0475
Now, plug these values into the Fisher equation: (1 + nominal rate) = (1 + 0.0387) * (1 + 0.0475). (1 + nominal rate) = 1.0387 * 1.0475. (1 + nominal rate) ≈ 1.08805825. To find the nominal rate, subtract 1 from the result: Nominal rate ≈ 1.08805825 - 1. Nominal rate ≈ 0.08805825. Now, convert the decimal back to a percentage: Nominal rate ≈ 8.81 percent.
So, the actual nominal rate of return is approximately 8.81 percent. Out of the given answer choices, 8.80 percent is the closest option. Option B
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Which of the following are steps in the Incident Reporting Process? (select all that apply)
review by management
develop changes in care
enact changes in care
record the incident
Answers
Answer:
review by management
develop changes in care
enact changes in care
record the incident
Review by management, develop changes in care, enact changes in care, record the incident are the following steps in the Incident Reporting Process.
What is Process?A process is a set of decisions and actions used to carry out work. Although we may not be aware of them, processes are present in every sphere of our lives, including work and leisure.
Employees who get sick or hurt at work are given the treatment and help they require thanks to an incident reporting mechanism. In order to manage and improve preventive measures, it also helps with the recording and tracking of incidents.
Therefore, all the steps are the part of Incident Reporting Process.
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which of the following best describes the deductions independent contractors may claim for valid business expenses?multiple choicefor agi deductionsfrom agi deductionsfrom agi deductions limited to income from the business activitiesfor agi deductions limited to income from the business activities
Answers
For AGI deductions best describes deductions independent contractors may claim for the valid business expenses.
What is AGI?Federal income taxes are computed using a person's adjusted gross income (AGI), which is calculated as their total taxable income less specific deductions. Taxable income is calculated by deducting personal exemptions and itemized deductions from AGI. For the majority of individual tax purposes, AGI is more significant than gross income. The cost of the sold asset is subtracted from the sales price of the goods or other item to determine gross income. It also covers dividends, interest, business income, rental income, and all other types of income in addition to salary. Adjusted gross income is defined as gross income less business or rental activity deductions and 21 additional specific items. Some deductions are limited based on a portion of AGI.
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______ is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.
Answers
The best description of the definition given above is Related diversification because it entails when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.
What is Related diversification?Related diversification refer to a situation when a firm change into another new industry that is very similar with the firm's existing industry or industries
The benefit of related diversification is it allow the sharing of related resources and ensures profit of real diversification.
Therefore, Related diversification is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.
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please help and thanks :)
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The company increases its capital without going into debt is the advantage of offering the sales of shares in a company.
What are shares?
A share, which can also apply to shares of mutual funds, limited partnerships, and real estate investment trusts, is a unit of equity ownership in the capital stock of a corporation in the financial markets. The term "share capital" describes all of an organization's assets. A shareholder of a corporation is someone who owns shares in the organization. A share represents the ownership relationship between the business and the shareholder and is an immovable unit of capital. A share's face value, which may not correspond to the market worth of those shares, is its denominated value.
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10 similarities between SNAP and TANF?
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According to the U.S. Department of Agriculture, the food stamp programme and the Temporary Assistance for Needy Families programme were both created to assist low-income families.
What are the similarities between SNAP and TANF?The U.S. Department of Agriculture claims that the food stamp programme and the Temporary Assistance for Needy Families programme were both created with the intention of aiding low-income families. While TANF provides cash to families for bills and other necessities, the food stamp programme offers assistance to families to purchase food.The Supplemental Nutrition Assistance Program, formerly known as the Food Stamp Program, provides food assistance to qualified families. A state debit card is provided to the recipient with the benefit amounts, which are based on the family's financial need. Benefits are transferable from one month to the next and can be used for almost any food purchase.According to the USDA, the TANF programme provides families with cash to assist with paying bills, electricity, and other required expenses. Only households with very low incomes are eligible for TANF. The TANF programme aims to support families in achieving financial independence, reduce unmarried pregnancies, and promote two-parent households.Learn more about SNAP and TANF refer to :
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Would you describe the Classic Watch Company
as being product-oriented or market-orientated?
Explain your answer.
Answers
Answer:
The Classic Watch Company is likely market-oriented. This means that the company is focused on understanding its customers’ needs and wants and designing products that meet those needs. The company takes into account the preferences of the market and adjusts its products to meet the demands of the market. The company is not just focused on creating a product and expecting the market to buy it; instead, it is actively seeking out customer feedback and using it to make informed decisions about the products and services it offers.
development of regulatory mechanism in banking
Answers
Answer:
The development of regulatory mechanisms in the banking industry has been an ongoing process to ensure the stability and integrity of the financial system.
Explanation:
This includes the implementation of rules and guidelines for banks to follow, as well as the establishment of independent agencies to monitor and enforce compliance. Some examples of regulatory mechanisms in banking include the Basel Accords, which set international standards for bank capital and liquidity, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which introduced stricter regulations on banks in the wake of the 2008 financial crisis. The goal of these regulatory mechanisms is to protect consumers and investors, prevent financial fraud and abuse, and maintain the overall stability of the banking system.
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Which of the following accounts would normally have a credit balance and appear in the balance sheet?
A. Dividends.
B. Salary expense.
C. Revenue.
D. Uneamed revenue.
E. Accounts receivable.
Answers
The account that contains a normal credit balance & the same appears in the balance sheet is unearned revenue.
The following information is relevant:
The dividend contains the normal debit balance and the same is to be shown under the stockholder equity statement.The salary expense is to be shown under the income statement and contains a normal debit balance.The revenue is to be shown under the income statement & contains a normal credit balance.Unearned revenue is a liability account and contains a normal credit balance. Also, it is to be shown under the balance sheet.The account receivable is an asset account & it contains a normal debit balance. Also, it is to be shown under the balance sheet.Therefore we can conclude that the account that contains a normal credit balance & the same appears in the balance sheet is unearned revenue.
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Your mutual fund was valued at $237,500. It has lost 6% per year for the last 3 years. What is its value today?
Answers
Answer:
$197,263.7
Explanation:
The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,
the interest rate will be -6%
The formula for compound interest is FV = PV × (1+r)^n
in this case
FV= current value
PV= $237,500
r= -6% or -0.06%
n= 3 years
Fv= $237, 500 x ( 1 + (-0.06)^3
Fv=$237,500 x (0.94)^3
Fv= $237,500 x 0.830584
Fv= $197,263.7
The current value =$197,263.7
explain the relationship between occupation and education with example
Answers
Answer:
People who do not qualify for a particular job are given education through training in order to gain the needed knowledge for that particular job. As students, we go to school in order to be educated for future jobs. Good education on a job gives a better understanding and this brings out an excellent delivery of work.
Explanation:
More consistent and extended education leads to more job opportunities, increased income, and the ability to change one's economic status. Education has not only a connection to sanitation and hygiene elements in informal settlements but also to general career development.
Umpqua's vision is "to become the world's greatest bank." The company sees its competitors as other financial institutions that perform banking services. This is taking a _________ of its competition.
Answers
Answer:
This is taking a industry point of view of its competition.
Explanation:
The statement shown in the question above presents an industry point of view regarding competition. This view was established based on the market in which both Umpqua and competitors are established. The industry's point of view in relation to the market is that the company defines that its competitors offer a product very similar to yours and that is capable of satisfying its customers efficiently, in the same way as the product produced by you same.
Since Umpqua sees its competitors as other financial institutions that perform banking services, it is taking an industry point of view of its competition.
What is competitive advantage?
Competitive advantage can be defined as the factors, conditions, or circumstances that allow a business organization (firm) to manufacture its finished goods or provide services better and perhaps cheaper than rival firms (competitors) in the same industry.
The major benefits of competitive advantage:
An increase in the level of sales.An increase in revenue generation.A higher profit margin than rival firms in the same industry.In this scenario, Umpqua's vision is to be in a more favorable position become superior to other financial institutions (rival firms) that perform banking services, thereby, making it the world's greatest bank.
This ultimately implies that, Umpqua is is taking an industry point of view of its competition because it aimed at becoming the world's greatest bank.
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determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent.
Answers
The present value of the investment is $5,658.29.
The present value is the value of an investment today. It is determined by adding the sum of the discounted cash flows of the investment.
Present value of year 1 cash flows= $3000 / 1.04 = $2,884.62
Present value of year 2 cash flows=$3000 / 1.04² = $2,773.67
Sum of the discounted cash flows = $2,773.67 + $2,884.62 = $5,658.29
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What does it mean to use diverse marketing strategies?
Answers
Answer:
Diversity refers to the fact that there are various ethnic or cultural groups within society. By using diverse marketing strategies, you appreciate this societal makeup with all of its different talents, needs, interests, and skills. It also means tolerating different preferences and ways of life — even in religious or sexual orientation.
Explanation:
Assume that you are interested in buying a coupon bond. It has a maturity of 12 years, a coupon rate of 9%, and a par value of $100. The required annual return for this bond is 7%. Assume that interest is compounded annually. What is the fair price of this bond
Answers
As with any security or capital investment, the theoretical fair value of a bond is the present value of the stream of cash flows it is expected to generate. Hence, the value of a bond is obtained by discounting the bond's expected cash flows to the present using an appropriate discount rate.
What is a fair bond?Fair Bond Value means the price calculated by an Independent Financial Adviser as being the average of the prices of the Bonds on each dealing day during the Fair Bond Value Calculation Period.
What do bond prices mean?A bond's dollar price represents a percentage of the bond's principal balance, otherwise known as par value. A bond is simply a loan, after all, and the principal balance, or par value, is the loan amount . 1 So, if a bond is quoted at $98.90 and you were to buy a $100,000 two-year Treasury bond, you would pay ~$98,900.
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https://brainly.com/question/26376004#SPJ4Do you think every place of our country is accessible to all kind of information obtaining sources why give reasons
Answers
Freedom of information is freedom of a person or people to publish and consume information.
What is meant by Freedom of Information ?
The right of a citizen to access information that the government holds is referred to as information freedom. This freedom is recognized as a constitutional right in several nations.
The Freedom of Material Act in the United States permits the revelation of official records and previously undisclosed information that is under the authority of the American government. The Electronic Freedom of Information Act, which mandates that certain types of government records be made electronically accessible to the public, was added to this law in 1996 as an amendment. This is intended to increase access to public information.
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The number of _____ an employer has is typically related to the employer cost of providing insurance benefits.
vehicles
employees
computers
tools
Answers
Answer:
The answer is Employees
Explanation:
Employees
The household income for the Washington family is $100,000, and they pay an income tax rate of 25%. What is the Washington's
annual disposable income?
-0)
A)
$100,000
B)
$25,000
C)
$50,000
D)
$75,000
Answers
Answer:
D)
$75,000
Explanation:
Disposable income is the diffrenced between gross pay and deductions.
Net pay =$100,000
the come tax = $100,00 -$25,000
=$75,000
Publishers and printing companies are both involved with books, magazines, and newspapers. One type of company is
considered part of the manufacturing section, because it produces the physical product: books, magazines,
newspapers, and so on. What sector does publishing belong to, since it does not produce a tangible product (until
printing transforms it into one)?
O primary, because it makes original content
secondary, because it transforms ideas into physical objects
tertiary, because it provides a service
quaternary, because it involves research
Answers
Answer:
quaternary, because it involves research
Explanation:
can anyone help with this 2 part question pls??
Answers
d, a person who had never had a credit card .