Better risk adjusted return

Assignment Help Accounting Basics
Reference no: EM13154354

You are analysts comparing the performance of two portfolio managers using the Sharpe Ratio measurement. Manager A shows a return of 16% with a standard deviation of 10%. Manager B shows a return of 11% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

Reference no: EM13154354

Questions Cloud

How will the money supply be affected by this transaction : How will the money supply be affected by this transaction ? what is the ultimate change in deposits, loans, and reserves in the banking system? Explain in detail.
Covariance and correlation help to create diversification : Diversification in an investment portfolio is a significant concept for creating the highest return for the least amount of risk. To create this diversification portfolio managers consider the covariance and correlation of investments. Explain how..
Determine estimated population mean : A sample of 36 packages reveals the mean weight to be 3.01 pounds, with a standard deviation of 0.03 pounds. Determine a 95 percent confidence interval for the population mean.
Challenges and opportunities of new financial innovation : In 200-250 words: What are the challenges and opportunities of new financial innovation (e.g. exchange trade funds, high frequency trading, collateralization, securitization) facing individual investors
Better risk adjusted return : You are analysts comparing the performance of two portfolio managers using the Sharpe Ratio measurement. Manager A shows a return of 16% with a standard deviation of 10%. Manager B shows a return of 11% with a standard deviation of 6%. If the risk..
How many grams of ch2oh are produced : If 5.0 g of H2 are reacted with excess CO, how many grams of CH2OH are produced, based on a yield of 86%?
What students remembered fron introductory macroeconomic : what his students remembered fron introductory macroeconomics about the creation of money. He reported that few students were confident enough or remenbered enough to reply correctly to his question.
Meaning of contribution margin in layman terms : Vince's assistant manager, an accounting major, has suggested that the firm should try to increase the contribution margin per pizza. Explain the meaning of "contribution margin" in layman's terms.
How much energy in kilojoules is required : How much energy in kilojoules is required to change 47.6grams of ice at 0 degrees of celcius water at the same tempature

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Determine aero incorporations free cash flow

Prepare a statement of cash flows for the year 2010 for Aero Inc.

  Is company violating the accounting principle of consistency

Would the use of accelerated depreciation in the financial statements be more conservative or less conservative than the current practice of using the straight-line method? Explain.

  Problem related to withdrawals

Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year? How many years?

  Total net income for combined three-year period

What is the error in total net income for the combined three-year period resulting from the inventory errors? Explain why the understatement of inventory by $56,000 at the end of 2007 results in an understatement of equity by the same amount in th..

  Deviance in public accounting firms

How has public criticism of the Public Accounting Profession contributed to workplace deviance? What solution are there to decrease deviance in public accounting firms? At least 150 words, thanks for your help in this matter.

  Settlement of an open accounts receivable

Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?

  Taxable income of 2013

Andrea, who is 28 and single, has adjusted gross income of $50,000 and itemized deductions of $5,500. In 2013, Andrea will have a taxable income of:

  Problem related to purchase of a new piece of equipment

Marchand Corp is considering the purchase of a new piece of equipment, which would have an initial cost of $500,000, a 7 year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows:

  Qualitative characteristics of relevance and reliability

Explain clearly why each of the qualitative characteristics discussed in the IASB conceptual framework is important. Which characteristic or characteristics do you think are the most important? Why?

  Localization implementation options

Get a clear understanding of the (LIO) Localization Implementation options events that would trigger testing What type of testing is required manual/automated?

  Sufficient understanding and reliable evidence

Auditors should understand the five components of internal control that are sufficient to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and to design the nature, timing, and extent of further ..

  Government in taxes and penalties

Orange Ltd. Withheld from its employees" paychecks $200,000 in Federal income and Social Security taxes for the May 29 payroll. It then spent the $200,000 on equipment upgrades, missing altogether the May 31 due date for the tax remittances. How m..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd