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maksim [4K]
2 years ago
6

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio:

Business
1 answer:
Oliga [24]2 years ago
6 0

Answer:

2.6%

Explanation:

Jensen Measure is calculated using the below formula

Jensen Alpha = Rp - (Rf + beta*(Rm - Rf))

Where Rp = Return on portfolio = 20%, Rf = risk free rate = 3%, Beta = Beta of portfolio = 1.8 and Rm = Market return = 11%

Jensen Alpha = 20 - (3 + 1.8*(11-3))

Jensen Alpha = 20 - (3 + 1.8*8)

Jensen Alpha = 20 - (3 + 14.4)

Jensen Alpha = 20 - 17.4

Jensen Alpha = 2.6%

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Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t
ozzi

Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each \frac{Maturity}{(1 + rate)^{time} } = PV  

cash flow and then add them together

\frac{20,000}{(1 + 0.08)^{1} } = PV  

\frac{40,000}{(1 + 0.08)^{2} } = PV  

\frac{60,000}{(1 + 0.08)^{3} } = PV  

Year Nominal     Present Value

1 20000  18, 518

2 40000 34,293

3 60000 47,630

TOTAL            100,441

5 0
2 years ago
Recently it was announced that FC Cola Company was pursuing a merger with Lemon-Lime Soda Co. The proposed merger is expected to
Helga [31]

Answer:c horizontal

Explanation:

6 0
1 year ago
(Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major processor of beef and other
Wewaii [24]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

1 Pound T-bone:

Selling price ($7.95 per pound) $ 7.95

Joint costs= $3.80

Profit per pound $ 4.15

Further process:

It costs $0.55 to further process one T-bone steak.

6-ounce filet mignon and one 8-ounce New York cut.

The filet mignon can be sold for $12.00 per pound, and the New York cut can be sold for $8.80 per pound.

A) Filet mignon: $12.00 pound

1 ounce= 16 ounce

0.375= 6 ounce

Price= 0.375*12= $4.5

New York cut= $8.80 a pound

Price= 0.5*8.80= $4.4

Sales= 4.5+4.4= $8.9

Costs= 3.80 + 0.55= 4.35

Profit= $4.55

B) It is more profitable to further process the T-bone stake by $0.40.

7 0
2 years ago
You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF
Anna [14]

Answer:

SF7.37

Explanation:

PV of cash flow is calculated using the formula

1-(1+r)^-n/r=1-(1-0.15)^5/0.15=1-(0.75)^5/0.15=1-0.237/0.15=5.085

So pv=5.085×4.4=SF

20.3385million

Using interest parity

1+ic/1+ib =Fo/So

Counter country is US while home country is in

swiss

1+0.05/1.04=fo/1.09

Fo=1.09×1.05/1.04=1.1

So expected PV=20.3385×1.1=SF22.37235million

Profit=23.37235-15=SF7.37

6 0
2 years ago
Read 2 more answers
Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin
Naya [18.7K]

Answer:

The correct answer is intangible.

Explanation:

An intangible asset is a product or service that should not be physically delivered, but that provide us with a service. An intangible product, also called service, should not necessarily revolve around a physical product; There are also so-called pure services, that is, whoever buys a service is not buying something physical; Who buys or hires a service is paying for a transformation process.

8 0
2 years ago
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