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A portflio expected return is 12% its standard deviaiton is 20%, and the risk-free rate if 4%. Which of the following would make for the greatest increase in the portfolio's Sharpe ratio?
a. An increase of 1% in expect return.b. A decrease of 1% in the risk-free rate.c. A decrease of 1% in its standard deviation
Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stoc
Zheng Sen wishes to accumulate $1 million by the end of 20 years by making equal annual end - of -year deposits over the next 20 years. If Zheng Sen can earn 10 percent on h
Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the averag
A coupon bond paying semiannual interest is reported as having an ask price of 126% of its $1,000 par value. If the last interest payment was made one month ago and the coup
Further, you expect that real interest rates will be 3.00 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security?
The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficien
A firm will sell an asset in 2 years for $375,000 and it costs $285,000 to produce today. Given an opportunity rate of 16%, will the firm make a profit on this asset? At wha
Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Compute the following income statement. d. Should th
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