Business, 13.04.2021 01:20 lilyrockstarmag

4) Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 6%, and the market’s average return was 13%. Performance is measured using an index model regression on excess returns. Assume alpha for stock A and stock B is 1% and 2% respectively Stock A Stock B Index model regression estimates 1% + 1.2(rM − rf) 2% + 0.8(rM − rf) R-square 0.588 0.442 Residual standard deviation, σ(e) 10.5% 19.3% Standard deviation of excess returns 21.8% 25.3% Calculate the following statistics for each stock (use whole percent values, 1%, not 0.01 for example, for your calculations): a) Information Ratio b) Sharpe Ratio c) Treynor Measure

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 16:30, emmmssss21

Bernard made a gift of $500,000 to his brother in 2014. due to bernard’s prior taxable gifts he paid $200,000 of gift tax. when bernard died in 2019, the applicable gift tax credit had increased. at bernard’s death, what amount related to the $500,000 gift to his brother is included in his gross estate?

Answers: 3

continue

Business, 22.06.2019 17:40, briannagiddens

Adamson company manufactures four lines of garden tools. as a result of an activity analysis, the accounting department has identified eight activity cost pools. each of the product lines is produced in large batches, with the whole plant devoted to one product at a time. classify each of the following activities or costs as either unit-level, batch-level, product-level, or facility-level. activities (a) machining parts. (b) product design. (c) plant maintenance. (d) machine setup. (e) assembling parts. (f) purchasing raw materials. (g) property taxes. (h) painting.

Answers: 2

continue

Business, 22.06.2019 19:30, jeanlucceltrick09

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?

Answers: 3

continue

Business, 22.06.2019 20:00, HahaHELPP

In william rathje's garbology project that focused on household waste, front door interviews found 15 percent of respondents saying that they consumed beer. the trash discard from the same area showed what percentage of household's consuming beer

Answers: 1

continue

You know the right answer?

4) Consider the two (excess return) index-model regression results for stocks A and B. The risk-free...