What is the treynor ratio if the expected risk-free rate

Assignment Help Financial Management
Reference no: EM131131387

A portfolio has a variance of .021904, a beta of .87, and an expected return of 10.1 percent. What is the Treynor ratio if the expected risk-free rate is 3.9 percent?

Reference no: EM131131387

Questions Cloud

Determine terminal year after-tax non-operating cash flow : Sports EX Inc. is a Sports Shoes Company which is considering investing in a new equipment for the production of a new line of Tennis and Football Shoes for its elite customers. The new equipment will costs $250,000, and an additional $80,000 is need..
Retirement in order to be able to fund your retirement : At your age (assume 20) you can assume that you will live to be 100. If you graduate at 23 and start to work, you can expect to work for 47 years, until age 70. At that time you will be eligible for full Social Security benefits, which can reasonably..
What is the present value of the technology : Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $169,000 received two years from today. What is the..
What is the current value of this stock : The last dividend paid by Lynwood Properties was an annual dividend of $1.20 a share. Dividends for the following 4 years will be increased at an annual rate of 12 percent. After that, dividends are expected to increase by 2 percent each year. The di..
What is the treynor ratio if the expected risk-free rate : A portfolio has a variance of .021904, a beta of .87, and an expected return of 10.1 percent. What is the Treynor ratio if the expected risk-free rate is 3.9 percent?
Calculate present value of the cash inflows of project : Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made Simple. The company has estimated that the revision will cost $80,000.  If the company requires a return of 12 percent fo..
How much will balloon payment be in eight years : Audrey Sanborn has just arranged to purchase a $530,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage has a 5.9 percent APR, compounded monthly, and calls for equal monthly payments over the next 30 years. How much will Au..
What is the present value of an annuity : What is the present value of an annuity of $7,300 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 6 percent.
How long will it take for the account to be paid off : One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.30 percent per month interest on the overdue balance. If the current balance is $12,000, how long..

Reviews

Write a Review

Financial Management Questions & Answers

  Sponsoring sports games and putting up beer gardens

K’s brewery is sponsoring sports games and putting up “beer gardens”, selling drinks and snacks. For the first such event, the manager of the beer garden needs to determine how many pretzels to order. If the game is interesting, the manager thinks th..

  Explain what is the firm''s weighted average cost of capital

Fancee Restaurant's cost of equity is 15.3 percent and its aftertax cost of debt is 6.1 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

  Debt-to-equity ratio-what is the value of the firm

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.4, a debt-to-equity ratio of .6, and a tax rate of 40 percent. Assume a risk-free rate of 4 percent a..

  Planning to purchase MRI and ultrasound equipment

Regional Healthcare System is a for-profit entity and is planning to purchase an MRI and ultrasound equipment for its new imaging center. The equipment will generate $3,000,000 per year in revenues for the next (5) years.

  Owner ship and control are not separated

Sole proprietorships have all of the following advantages except easy to set up. single taxation of income. Limited liability. Owner ship and control are not separated.

  Annuity due-what is the cost of leasing

Annuity Due. Your landscaping company can least a truck for $8,000 a year (paid at year-end) for 6 years. It can instead buy the truck for $40,000. The truck will be valueless after 6 years. The interest reate your company can earn on its funds is 7%..

  Find the firms debt ratio

Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets): ROE (N/E) = 0.24 (expressed as a decimal)

  What is the return on your investment in the bond

You purchase a 7 percent $1,000 bond with a term of ten years and reinvest all interest payments. If interest rates rise to 10 percent after you purchase the bond what is the return on your investment in the bond?

  Negative real yield did they mean-nominal interest rate

Writing in the Wall Street Journal, two economists made the following prediction: "We believe that when investors awake from their depressed state, they will realize that they do not have to lend the U.S government money for the 10 years at a negativ..

  Companys weighted average cost of capital

What would be the before-tax cost of debt (rd) for a company that currently has 10-year, 12% annual coupon bonds outstanding? The bonds are currently selling in the market for $1,200 and have a $1,000 par value. what would the company’s weighted aver..

  Total asset turnover and the equity multiplier

The Green Giant has a 5 percent profit margin and a 62 percent dividend payout ratio. The total asset turnover is 1.2 and the equity multiplier is 1.6. What is the sustainable rate of growth?

  Balance sheet-statement of cash flows for the year ended

The balance sheet for December 31, 2011, income statement for the year ended December 31, 2011, and the statement of cash flows for the year ended December 31, 2011, of Bernett Company are shown in the following balance sheet.

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