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?

Answers

Answer 1

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%


Related Questions

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500.
Projected revenue and costs are:
• revenue of $5,000
• supply costs of $1,000
• staff payroll of $2,500
• rent of $1,000
• insurance of $100
Match the dollar amount to the correct line item on a cash flow budget:
non

Answers

Answer:

I need to put middle school mode on

Heridan Company is considering the following alternatives: Alternative AAlternative B Revenues$64000$72000 Variable costs 38400 38400 Fixed costs 10000 16000 What is the incremental profit?

Answers

Answer:

$2,000

Explanation:

To get the incremental profit, we would compute the profit for each alternatives and then subtract .

Alternative A

Incremental profit

= Revenues + Variable costs - Fixed costs

= $64,000 + $38,400 - $10,000

= $92,400

Alternative B

Incremental profit

= Revenues + Variable costs - Fixed costs

= $72,000 + $38,400 - $16,000

= $94,400

Incremental profit = Alternative B - Alternative A

Incremental profit = $94,400 - $92,400

Incremental profit = $2,000

Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 4.5%/year compounded monthly. If the future value of the annuity after 11 years is $55,000, what was the size of each payment?

Answers

Answer:

The size of each payment was $322.78.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value of the amount after 11 years = $55,000

M = Monthly payment = ?

r = Monthly interest rate = 4.5% / 12 = 0.045 / 12 = 0.00375

n = number of months = 11 years * 12 = 132

Substituting the values into equation (1) and solve for M, we have:

$55,000 = M * (((1 + 0.00375)^132 - 1) / 0.00375)

$55,000 = M * 170.394706737074

M = $55,000 / 170.394706737074

M = $322.779979808101

Rounding to 2 decimal places, we have:

M = $322.78

Therefore, the size of each payment was $322.78.

Please tell me the right answer.. if i fail one semester, and i pass the other, then do i pass the grade? Please tell me i need to know :\

Answers

Answer:

okay whats the question I help you

Explanation:

also i need help with my math hw too lol

no you dont you would have to retake a semester next year or take the course over the summer

The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Answers

Answer:

The labor participation rate would not change because it counts the labor force as a percentage of the total adult population, and the labor force includes both the number of people employed and the number of people unemployed, so, even if those working part-time were counted as unemployed by the BLS, they would still be part of the Labor Force.

The labor participation rate formula is:

Labor Participation Rate = (Labor Force / Total Adult Population) x 100

The unemployment rate would indeed change, because it counts the number of unemployed as a percentage of the labor force. If those working part-time were counted as unemployed by the BLS, the number of people unemployed would obviously spike.

The formula is:

Unemployment Rate = (Number of Unemployed / Labor Force) x 100

Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferred stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par. What is the capital structure weight of the common stock?

Answers

Answer:

26.43 %

Explanation:

The Capital Structure is based on  the Market Weight of the Sources of Finance as shown below :

Equity market value = Number of shares × price/share

Equity market value  = 10,200 ×  $36

Equity market value = $367,200

Current debt value = Number of bonds × price/bond

Current debt value = 520 × (1930)

Current debt value = $1,003,600

Preferred stock value = Number of shares × price/share

Preferred stock value = 215 ×  $87

Preferred stock value = $18,705

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $367,200 + $1,003,600 + $18,705

Total capital = $1,389,505

Weight of Equity = Equity value / Total capital

Weight of Equity  = $367,200 / $1,389,505

Weight of Equity = 26.43 %

Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable$40,000 $36,000 Merchandise inventory$28,000 35,000 Net sales 190,000 186,000 Cost of goods sold 114,000 108,000 Total assets 425,000 405,000 Total shareholders' equity 240,000 225,000 Net income 32,500 28,000 Hulkster's 2021 profit margin is (rounded): 17.1%. 13.5%. 4.5%. 7.6%.

Answers

Answer:

Hulkster's 2021 profit margin is:

17.1%.

Explanation:

a) Data and Calculations:

                                                   2021          2020

Accounts receivable              $40,000     $36,000

Merchandise inventory         $28,000       35,000

Net sales                                190,000      186,000

Cost of goods sold                 114,000      108,000

Total assets                          425,000     405,000

Total shareholders' equity  240,000     225,000

Net income                            32,500        28,000

Profit margin = net income/net sales * 100

= $32,500/$190,000 * 100

= 17.1%

b) The profit margin of 17.1% indicates that Hulkster Company has generated an income of 17.1 cents for each dollar of sales.  It shows the company's income performance with relation to the net sales revenue.  It is a ratio of the net income expressed as a percentage of the sales.

How much money should be deposited today in an account that earns 3 %compounded semiannually so that it will accumulate to $ 13,000 in three​ years?

Answers

Answer:

PV= $11,889.05

Explanation:

Giving the following information:

Future Value (FV)= $13,000

Number fo periods (n)= 3*2= 6 semesters

Interest rate (i)= 0.03/2= 0.015

To calculate the initial deposit, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000 / (1.015^6)

PV= $11,889.05

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $140,000 and would decrease the current variable costs of $80 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $240,000 and current break-even units are 2,000. If Forrester purchases this new equipment, the revised break-even point in units would:

Answers

Answer:

Break-even point in units= 2,800

Explanation:

Giving the following information:

Fixed csots= $140,000

Unitary variable cost= 80 - 10= $70

Selling price per unit= $120

To calculate the new break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 140,000 / (120 - 70)

Break-even point in units= 2,800

Compute the amount that a $42,000 investment today would accumulate at 11% (compound interest) by the end of 6 years.

Answers

Answer:

FV= $78,557.41

Explanation:

Giving the following information:

Initial investment (PV)= $42,000

Interest rate (i)= 11% = 0.11

Number of periods= 6 years

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1+i)^n

FV= 42,000* (1.11^6)

FV= $78,557.41

A company resells 400 shares of its own common stock for $20 per share. The company has acquired these shares two months before for $15 per share. The resale of this stock would be recorded with a:_______.
A) Debit to Common Stock for $8,000
B) Credit to Treasury Stock for $8,000
C) Credit to Additional Paid-In Capital for $2,000
D) Debit to Additional Paid-In Capital for $2,000

Answers

Answer:

C. Credit to additional paid-in capital for $2,000

Explanation:

Based on the information given we were told that 400 shares of own common stock was resell for $20 per share in which the shares was acquired two months before for $15 per share which means that the resale of this stock would be recorded with a: Credit to additional paid-in capital for $2,000

Calculated as:

Additional paid-in capital=(400 shares*$20 per share)-(400 shares*$15 per share)

Additional paid-in capital=$8,000-$6,000

Additional paid-in capital=$2,000

In designing health promotion efforts, it is important to set clear goals and measure how successful you are compared to the money and time you invest. This is known as:__________.
a. Objectivity
b. Diffusion of innovations
c. Accountability
d. Two-step flow

Answers

Answer:

c. Accountability

Explanation:

This is known as accountability. In other words its making sure that you are holding yourself accountable for doing what you need to do and making sure that your efforts are not for nothing. This is done by staying on top of your choices and adjusting your decisions so that the money and time you invest are paying off with and pushing you towards the goals that you have set forth.

Tell me about a time when you made a mistake.. How did you find it and what did you do to correct it?

Answers

Answer:

When I first became an assistant manager of a sales branch, I tried to take on everything myself, from the day-to-day operations of the branch to making all of the big sales calls. I quickly learned that the best managers know how to delegate effectively so that work is done efficiently. Since then, I have won numerous awards for my management skills, and I believe a lot of this has to do with my ability to delegate effectively.

Target Corporation reported the following information in a recent Form 10-K. Consolidated Statement of Operations ($ millions) FY 2016 Cost of sales $67,596 Consolidated Statement of Financial Position ($ millions) FY 2016 FY 2015 Inventory $10,321 $8,282
What is the (a) inventory turnover ratio, and (b) average days in inventory, for the fiscal year ended January 30, 2016?

Answers

Answer: See explanation

Explanation:

a. inventory turnover ratio

This will be calculated as:

= Sales cost / Average inventory

= $67,596 / $9301.50

= 7.2672

= 7.27

(b) average days in inventory.

This will be calculated as:

= 365 days / Inventory turnover ratio

= 365 / 7.27

= 50.20

= 50 days

Note:

Average inventory = ($10,321 + $8,282) / 2 = $9301.50

A manual press costs $16,000, and it will be scrapped after 10 years. Compute the depreciation and book value for the first two years using 100% bonus depreciation.

Answers

Answer and Explanation:

The computation of the depreciation and the book value for the first two years would be

Depreciation for Year 1

= 100% Bonus + regular depreciation

= $16,000 + $16,000 ÷ 10 years

= $17,600

And,

Book value year 1 is

= $16,000 - $1,600

= $14,400

Now

Depreciation for Year 2 is

= Regular depreciation

= $1,600

And,

Book value year 2 is

= $14,400 - $1,600

= $12,800

Explain the actions the FED should take if it wanted to move from a point on the short-run Phillips curve representing high unemployment and low inflation to a point representing lower unemployment and higher inflation.

Answers

Answer:

The short run Phillips curve states that there is an inverse relationship between unemployment and inflation in the short run.

Since unemployment is high and the inflation rate is low, in order for the FED to decrease unemployment and increase inflation it must decrease the interest rate. That way, the economy should kick off and start growing which should decrease unemployment and at the same time will increase inflation.

If marginal cost is above average total cost,
A Average total cost is rising
B Average total cost is falling
C Average total cost is at its minimum
D Average total cost is at its maximum

Answers

Answer:

Average total cost is rising

The answer is A ! Hope this helps

right decision in right time get success in our life?​

Answers

Answer:

You are the only person who get's to decide if you are happy or not- Do not put you're happiness into the hands of someone else. Do not make it contingent their acceptance of you, or there feelings for you. At the end of each day , it doesn't matter if someone dislikes you, or if someone doesn't want to be with you. All that matters is that you are happy with the person you are becoming. All that matters is that you like yourself, that you are proud of what you put out into the world. Never forget that you are in charge of you're joy, and of you're worth. You get to be you're own validation. Please never forget that!

Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $30 per share dividend. The dividend will not subsequently change. Given a required return of 18%, what should the stock sell for today?

Answers

Answer:

the stock sell for today is $1.16

Explanation:

The calculation of the stock sell for today is as follows;

Value after year 31 is

= (D31 ÷ Required return)

= $30 ÷ 0.18

= $166.666667

Now the current value is  

= Future dividend and value × Present value of discounting factor(rate%,time period)

= $30 ÷ 1.18^31 + $166.666667 ÷ 1.18^31

= $1.16

Hence, the stock sell for today is $1.16

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method?
A. $ 4.5 million.
B. $8.25 million.
C. $ 12 million.
D. None of these is correct.

Answers

Answer:

C. $12 million.

Explanation:

The computation of the  accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method is given below:

Accumulated depreciation is

= $16.5 million × [(10 + 9 + 8 + 7 + 6) ÷ 55]

= $12 million

hence, the accumulated depreciation be at the end of year five years is $12 million

Therefore the correct option is c.

Carolyn has an AGI of $38, 400 (all from earned income), two qualifying children, and is filing as a head of household. What amount of earned income credit is she entitled to?
a) $4.256
b) $5, 572
c) $3, 305
d) $1, 316
e) $0

Answers

Answer:

d) $1, 316

Explanation:

Particulars                    Amount

Maximum Credit           $5,572

Phase out limit              $4,256   (38,400 - 18,190)*21.06%

Earned Income Credit Entitled to = Maximum Credit - Phase out limit

Earned Income Credit Entitled to = $5,572 - $4,256

Earned Income Credit Entitled to = $1,316

Andrews Corp. ended the year carrying $46,369,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
a. $264,018,840
b. $191,318,000
c. $67,711,000
d. $104,076,000

Answers

Answer: $46,369,000

Explanation:

At the end of the year, all the costs associated with inventory and operations have been dealt with in the income statement.

This means that if the entire inventory were sold at current prices which is $46,369,000, the addition to revenue will be what the goods were sold for which is the current price.

Options do not have this answer but that is it.

Brace Corporation uses direct labor-hours as the cost driver in its normal costing system. Brace budgeted that it would use 21,600 direct-labor hours during the year. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and Brace had $20,440 of underapplied overhead. The budgeted manufacturing overhead must have been: Round to the nearest dollar.

Answers

Answer:

total estimated overhead costs for the period= $515,095.2

Explanation:

First, we need to calculate the allocated overhead:

Under/over applied overhead= real overhead - allocated overhead

20,440 = 506,920 - allocated overhead

allocated overhead= $486,480

Now, we can determine the predetermined overhead rate:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

486,480= Estimated manufacturing overhead rate*20,400

Estimated manufacturing overhead rate= 486,480/20,400

Estimated manufacturing overhead rate= $23.847 per direct labor hour

Finally, the estimated overhead for the period:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

23.847= total estimated overhead costs for the period/21,600

total estimated overhead costs for the period= 21,600*23.847

total estimated overhead costs for the period= $515,095.2

If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be:

Answers

Answer:

b. lower than 10%

Explanation:

Missing word "a. higher than 10%, b. lower than 10%, c. if its three month option then she hopes its 10/3, d. irrelevant where realized will be"

If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be lower than 10%. When hedging implied volatility through delta hedging is done, it means that the trader is expecting that volatility will decline and it has taken the position on the the downside of the implied volatility as it is reflected by the delta hedging. Delta hedging is not about betting on the upside of implied volatility.

On July 1, Smith Company borrowed $430,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $64,083. What amount of interest expense will be included in the first annual payment?
a. $29,683
b. $34,400
c. $400,317
d. $43,000
e. $64,083

Answers

It should be e $64,083

Bonita Company's inventory records show the following data:

Units Unit Cost
Inventory, January 1 10900 $8.00
Purchases: June 18 8700 8.10
November 8 5700 5.00

A physical inventory on December 31 shows 5700 units on hand. Under the FIFO method, the December 31 inventory is:_______

Answers

Answer:

$28,500

Explanation:

FIFO will give the same result whether you use perpetual or periodic system.

Ending Inventory = Units Left × Earliest Price

Therefore,

Ending Inventory = 5700 units × $5.00

                             = $28,500

On January 1, 2016, Cobb Co. received, for the sale of a parcel of land, a ten-year note receivable having a face amount of $2,000,000 and a stated interest rate of 8% payable annually each December 31. The market rate of interest for this type of note is 10%. Present value factors are as follows: At 8% At 10% Present value of 1 for 10 periods 0.46319 0.38554 Present value of an ordinary annuity of 1 for 10 periods 6.71008 6.14457

Answers

Answer: $‭1,754,211

Explanation:

8% of $2,000,000 will be payable every year for 10 years;

= 2,000,000 * 8%

= $160,000

The amount received from selling the land is;

= Present value of interest payable annually + Present value of Note

= (160,000 * Present value interest factor of annuity, 10 years, 10%) + (2,000,000 * present value interest factor, 10 years, 10%)

= (160,000 * 6.14457) + (2,000,000 * 0.38554)

= $‭1,754,211

In the economy represented by the graph, which set of economic measures is
most likely present at point B in the business cycle?
The Business Cycle
А
с
Production output
D
B
Time
O A. The steady growth line has started to decline.
O B. The unemployment rate is at its lowest point.
O c. Gross domestic product is at its lowest point.
O D. The economy has started a period of recession.

Answers

The economy represents by the graph is a set of measures that is most likely to occur in the business cycle are Gross domestic product is at its lowest point. Thus option C is correct.

What are economic measures?

The economic measures are those that economist use for measuring the economy of a country and include the GDP, unemployment, and inflation. The GDP is the most important measure and refers to the business cycle. As per the graph, the GDP is at the lowest point.

Find out more information about the economic indicator.

brainly.com/question/903754

Answer: the unemployment rate is at its lowest point

Explanation:

just took the test

A monopolist can sell 15 toys per day for $12.50 each. To sell 16 toys per day, the price must be cut to $12.20. The marginal revenue of the 16th toy is:_________.A. $12.20.B. $-0.30.C. $7.70 .D. $16.

Answers

Answer:

A monopolist can sell 15 toys per day for $12.50 each. To sell 16 toys per day, the price must be cut to $12.20. The marginal revenue of the 16th toy is:_________.

A. $12.20.

Explanation:

For this monopolist, the marginal revenue is the incremental revenue which it generates from each additional unit of sales.  It can also be expressed as the rate at which total revenue changes from what it was before now.  In this case, the additional revenue that the monopolist will get from selling one additional unit is $12.20.  It is the additional revenue that the monopolist gets for the 16th item.

A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to maturity

a. 9.32%
b. 8.33%
c. 7.92%
d. 9.45%
e. 8.61%

Answers

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

Other Questions
A problem that free African Americans faced in the North was ? A. Traveling freely.B. Buying property.C. Choosing where to work.D. Seeking an education. The primary reason that osteoporosis accelerates after menopause in women is: * 2 points A. Increased osteoblast activity. B. Reduced levels of vitamin C. C. Diminished osteoclast activity. D. Reduced levels of circulating estrogens. Plz, Help me with this!!!! Plz, Help me with this!!!!Plz, Help me with this!!!! ten less than four times a number is 50the equation is -----the solution is ------ Based on what you have learned, choose the correct statements about the Oregon and California Trails. Check all that apply.The California Trail was used before the Oregon Trail.The Oregon Trail led pioneers to rich farmlands, where they settled.The California Trail split off from the Oregon Trail at the Rocky Mountains.The Oregon Trails mountain passess made it a more difficult journey than the California Trail.The California Trail mainly attracted pioneers seeking gold, especially after 1848. PLZ Help Your school carnival charges $2 for admission and $.50 foreach game. You go to the carnival with $5.50. Write and solvean inequality that represents the possible number of gamesyou can play. What is the maximum number of games you canplay? A 5.0-g object carries a net charge of 3.8 micro-Coulomb. It acquires a speed v when accelerated from rest through a potential difference V. A 2.0-g object acquires twice the speed under the same circumstances. What is its charge? !!I NEED HELP!!What is a benefit to utilizing fusion reactions instead of fission reactions?A)Fusion reactions do not require any kind of radiation shielding to prevent exposure.B)Fusion reactions do not produce harmful radiation and transuranium nuclides.C)Fusion reactions can proceed in any temperature range.D)Fusion reactions are easier to control and regulate. These the flow of electrons (the current) and where some of electrons energy gets converted into heat a. electric currents b. Insulators c. Resistors e. conductors An element has three isotopes. The masses and % abundances for the isotopes are: Isotope #1 mass 38.96 amu, % abundance=93.26%, Isotope #2 mass39.96 amu, % abundance 0.012 %, and Isotope #3 mass= 40.96 amu, % abundance=6.73 %. The average atomic mass for this element has to be Which of the following statements best characterizes how developed and developing countries impact the environment? A. Neither developed nor developing countries have had a significant impact on the environment in the past century. B. Developed countries have tended to improve the environment, while developing countries have tended to damage it. C. Developed countries have damaged the environment, while developing countries have had little impact. D. Both developed and developing countries have had significant negative impacts on the environment. Please select the best answer from the choices provided.I'm Confused Define rivalry and excludability and use these terms to discuss the four categories of goods. Rivalry is the situation that occurs when Given the following equation...Fe + H2SO4 Fe2(SO4)3 + H2What is the charge (oxidation number) of Fe in Fe2(SO4)3 in 334 g of Fe2(SO4)3 ? (use atomic masses rounded to the nearest whole number.) How do historians use the skill of periodization?O A. To organize history into distinct units with shared featuresO B. To decide what really happened in ancient historyO C. To create timelines showing many different eventsO D. To figure out when certain events actually happenedSUBMITHow do historians use the skill of periodization? Whos ready for Christmas Break? Time to start wearin heavy clothes, sit by the fireplace watchin the snow fall as your drinkin hot chocolate gettin all warm and cozy under tons of blankets. 5Determine the value of x in the figure shown.A) 14B) 53C) 29D) 24 A particular fruit's weights are normally distributed, with a mean of 331 grams and a standard deviation of 23 grams. If you pick 15 fruits at random, then 14% of the time, their mean weight will be greater than how many grams? Find the coordinates of quadrilateral "WXY' after a dilation with the scale factor of 2.Original coordinates:V(6, 2), W2,4), X-3, -2), Y(3, -5), scale factor of 28W0 -861012NEED HELP ASAP For the system, what is the y-value? 1x + 3y = 10 -x + 8y = 4 Hopefully you have gained some insight into how spoken languages (such as English) and visual languages (such as ASL) use various grammatical elements and tools to convey meaning. Briefly compare and contrast ASL and English, highlighting key elements such as verb tenses, sentence order, structural patterns, or other elements you have learned so far.