·Mean annual return 4%·Mean excess return 8.6%·Standard deviation of annual returns 23.4%·Portfolio beta 1.6The coefficient of variation and Sharpe meas
A. 0.82 0.37
B. 1.32 1.23
C. 1.32 0.37
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Justin Banks just won the lottery and is trying to decide between the annual cash flow payment option or the lump sum option. Justin can earn 8% at the bank and the annual cash flow option is $100,000
A. $1,500,000.00.
B. $1,080,000.00.
C. $924,423.70.
Which of the following statements about the implications of tests for the efficient market hypothesis (EMH) is least accurate?
A. Bypurchasingamarketindexfund,aninvestorcanmatchthemarketreturnandminimizecosts.
B. Otherthancorporateinsidersandmarketspecialists,mosttradershavemonopolisticaccesstoinformation,whichrejectsthestrong-formEMH.
C. Technicaltradingrulesdonotconsistentlyprovideexcessreturnsafteradjustingfortradingcostsandtaxes.
On 1 January, a company entered into a capital lease resulting in an obligation of $10,000 being recorded on the balance sheet. The lessors implicit interest rate was 12 percent. At the end of the fir
A. $1,000
B. $1,200
C. $2,500
The nominal risk-free rate of return during a given period is best described as the return, that compensates investors for the:
A. Timevalueofmoneyonly
B. Timevalueofmoneyandtheexpectedrateofinflationonly
C. Timevalueofmoneyandtheuncertaintyofthereturnonly