Q: Which is the accounting rate of return using the average investment?
A: Summary of the relevant information as provided in the question : cost of investment = £…
Q: Which are the Methods for Finding Rate of Return?
A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time. When the…
Q: Compare and contrast dollar returns and rates of return.
A: The returns from any investment can be calculated in terms of value (amount terms) or percentages.
Q: Morningstar's Risk-Adjusted Rating most closely resembles which measure? The Treynor Index Jensen's…
A: Financial statements are statements which states the business activities performed by the company .…
Q: Define the term Risk-free real return?
A: Risk-free real return is a hypothetical number that mirrors the foreseen return on a venture that…
Q: What are the shortcomings of the internal rate of return criterion?
A: Solution- Internal Rate of Return (IRR)- The Internal Rate of return (IRR) is that the discount…
Q: Nhat is the exact rate of return?
A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…
Q: s. What is the geometric average return for this time period?
A: Geometric Average: It is the average return for a set of values computed with the products of the…
Q: Why is the variance (or standard deviation) used as a measure of risk? What are the advantages and…
A: Reasons of utilizing variance as a risk measure: While consider a lesser risk in investment, fewer…
Q: What is the internal rate of return?
A: Internal rate of return is the discount rate at which present value of cash inflows equals outflows…
Q: ected rate of return concept differ from that of the rea
A: There are many method of valuation of stock based on expected rate and realized return and dividends…
Q: Expected return and standard deviation a. What is the expected return of asset b?
A: The expected return is the return that an investor expects on its investment under various…
Q: What is the significance of finding the internal rate of return?
A: IRR helps to check the viability of the project. If IRR is more than Kc than Project seems to be…
Q: What is meant by the term abnormal rate of return?
A: Abnormal rate of return is return earned above or below the normal rate of return.
Q: What is the difference between the possible returns and the expected return?
A:
Q: difference between internal rate of return and net present value?
A: Difference between internal rate of return and net present value?
Q: The effects of financial choices can be understood by performing which of these? Check two. O Micro…
A: Financial choices involves the financial, credit, and debt management information required to make…
Q: Which of the following shows the trade-off between expected profit (y-əxis) and in-stock probability…
A: The relationship between expected profit and probability is that for lower and higher expected…
Q: Which different terms are used to refer to rate of return?
A: Rate of return is the return that is expected by the investors from the investment made. It is…
Q: What is the gradient-series present-worth factor with formula?
A: Step 1: When there is a uniformly change in rate of interest is a gradient series of cash flow. It…
Q: Basic Elements of Risk-Adjusted Returns?
A: Introduction: Risk adjusted return is a methodology for calculating and evaluating the returns on an…
Q: The break-even value calculation is similar to the calculation we use for theinternal rate of…
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: How do you turn an income statement int a forecasted return? And how is it helpful?
A: Return means earn additional on invested amount. Return is a positive factor in every investment.…
Q: What type of risk is measured by the standard deviation?
A: Standard deviation is the measure of risk that the actual return of an investment will deviate from…
Q: What is risk return ratio?
A: Any susceptibility a corporation or organization has to factors that might affect profitability or…
Q: What do we mean by internal rate of return (IRR)?
A: Internal rate of return : Internal rate of return is one of the techniques used in capital budgeting…
Q: What is the accounting rate of return?
A:
Q: expected return and risk (measured by standard deviation) a
A: Portfolio is the combination of stocks, assets or securities. The combination of assets is…
Q: What are the different terms used to refer to the rate of return?
A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…
Q: Explain Key Statistical Relationships between Covariance and Correlation of Returns?
A: Covariance:It is defined as the statistical relationship between stock prices of stock that vary…
Q: How does the application of the standard deviation differ from the application of the coefficient of…
A: a. Standard Deviation: The average fluctuation of a variable around the mean is known as standard…
Q: Present the internal rate of return criterion and its strengths and weaknesses.
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Standard deviation measures which type of risk?
A: Standard deviation is an important measure of risk in finance.
Q: Standard deviation measures which type of risk? Select one: a. Total b. Non diversifiable c.…
A: STANDARD DEVIATION IS USED AS AN INDIACATOR OF MARKET VOLATILITY AND THUS OF RISK .
Q: what is the difference between a required rate of return and an expected rate of return?
A: Rate of return (ROR) is a value at which an investor earns additional amount on invested amount…
Q: What is standard deviation? What type of risk does it measure
A: Standard deviation measures the risk of an investment regarding how it will fluctuate or deviate…
Q: What is the relationship between NPV and profitability index (PI)?
A: The concept of net present value is used to decide whether to invest in an investment or not. It is…
Q: What is the relationship between risk and return?
A: Risk return relationship: The association among risk and return is recognized as the risk-return…
Q: How are the following used on a stand-alone and a portfolio basis? 1. Standard Deviation 2.…
A: Stand-alone risk: The risks posed by a single asset, division, or project are referred to as…
Q: What is the Variance of returns for Security XYZ?
A: Outcome Probability Return A 20% 20% B 80% 25% Expected return = (Probability of…
Q: What is the difference between Beta and Standard Deviation as a measure of risk?
A: Risk can be divided into two categories- unsystematic risk and systematic risk. Risk is measured in…
Q: b. Why do some investors prefer to use Lower Partial Standard Deviations (LPSD) as compared to the…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: what does high value of standard deviation mean on risk-return ratio
A: Risk-return ratio is the ratio which shows the risk which an investor will get for having one unit…
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
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- Qw.02. Compute trend percents for the following accounts using 2020 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favourable or unfavourable Sales Cost of goods sold Accounts receivable Numerator: 2024: 2023: Numerator: 2024 $ 463,414 234,107 22,522 2024: 2023: 2022: 2021: 2020: Is the trend percent for Net Sales favourable or unfavourable? Numerator: I 1 1 1 Trend Percent for Net Sales: 2023 $ 306,897 155,099 17,861 1 1 1 I 1 2022 2021 $ 249,510 $ 175,095 128,255 89,348 10,226 17,042 Trend Percent for Cost of Goods Sold: Denominator: 2024: 2023: 2022: 2021: 2020: Is the trend percent for Cost of Goods Sold favourable or unfavourable? 7 Denominator: 7 1 Trend Percent for Accounts Receivable: Denominator: 2022: 2021: 2020: Is the trend percent for Accounts Receivable favourable or unfavourable? = E # = S U = E = = 2020 $ 129,700 64,850 8,871 Trend percent Trend percent Trend percent 1% %6 % % % % 196 196 56…(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Time Asman Salinas 1 $10 $30 2 12 27 3 11 32 4 13 34 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Question content area bottom Part 1 The rate of return you would have earned on Asman stock from time 1 to time 2 is enter your response here%. (Round to two decimal places.)How do you calculate net sales? Also... Do you only look at current year data or do you factor previous year data and current year? Thx
- he following data represents the annual sales of a Digitech Automation products SAOG. Year 2014 2015 2016 2017 2018 Sales (in Millions) OMR 380 440 520 396 514 Use method of least squares to calculate the trend values and the forecast for the future period. Which of the following is the annual sales forecast for the year 2019 using least squares method? a. 539.6 Million OMR b. 584.4 Million OMR c. 606.8 Million OMR d. 562 Million OMRCompute trend percents for the following accounts using 2020 as the base year. For each of the three accounts, state whe situation as revealed by the trend percents appears to be favourable or unfavourable. Sales Cost of goods sold Accounts receivable Numerator: 2024 $ 564,662 296,074 27,273 Numerator: 2024: 2023: 2022: 2021: 2020: Is the trend percent for Net Sales favourable or unfavourable? 2023 $364,298 191,135 21,275 1 1 1 Trend Percent for Net Sales: 1 $ 1 1 2022 293,789 156,170. 20,095 Denominator: Trend Percent for Cost of Goods Sold: Denominator: 2024: 2023: 2022: 2021: 2020: is the trend percent for Cost of Goods Sold favourable or unfavourable? 2021 2020 $ 212,122 $ 158,300 111,503 12,430 = 82,316 10,828 Trend percent Trend percent % de 2 % *** % % % % % % % %Compute trend percents for the following accounts using 2020 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favourable or unfavourable. Sales Cost of goods sold Accounts receivable Numerator: 2024 $ 754,236 372,126 36,731 Numerator: 1 2023 $ 499,494 246,502 29,121 Trend Percent for Net Sales: 1 1 1 1 1 1 2024: 2023: 2022: 2021: 2020: Is the trend percent for Net Sales favourable or unfavourable? 2022 $394,857 196,780 27,127 Prev Denominator: Trend Percent for Cost of Goods Sold: 1 Denominator: 5 of 8 2021 $ 265,005 131,752 15,529 = Next > 2020 $ 196,300 96,187 13,407 Trend percent % % % % %
- From the following price data, compute the annual rates of return for Asman and Salinas. Time Asman Salinas 1 $ 10 $ 31 2 13 27 3 12 33 4 14 35 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Question content area bottom Part 1 The rate of return you would have earned on Asman stock from time 1 to time 2 is enter your response here %. (Round to two decimal places.) Part 2 The rate of return you would have earned on Asman stock from time 2 to time 3 is enter your response here %. (Round to two decimal places.) Part 3 The rate of return you would have earned on Asman stock from time 3 to time 4 is enter your response here %. (Round to two decimal places.) Part 4 The rate of return you would have earned on Salinas stock from time 1 to time 2 is enter your response here %. (Round to two decimal places.) Part 5…1. Angel Trading presents the following sales figures in terms of units. 2014 10 000 2015 11 650 2016 12 395 2017 14 670 2018 18 485 2019 Required: Determine the projected sales on 2019 using either simple moving average or arithmetic geometric curve.Compute trend percents for the following accounts using 2020 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favourable or unfavourable. Sales Cost of goods sold Accounts receivable Numerator: Numerator: 2024 $ 628,449 322,959 30,417 Numerator: 1 ( ( 2024: 2023: 2022: 2021: 2020: Is the trend percent for Net Sales favourable or unfavourable? Trend Percent for Net Sales: 2023 $ 408,084 209,773 23,750 } ( } 2022 2021 $ 334,495 $ 232, 288 173,642 22,846 Denominator: Trend Percent for Cost of Goods Sold: S Denominator: } } 1 1 1 2024: 2023: 2022: 2021: 2020: Is the trend percent for Cost of Goods Sold favourable or unfavourable? 1 Trend Percent for Accounts Receivable: Denominator: 1 2024: 1 2023: 1 2022: } 2021: 1 2020: 1 Is the trend percent for Accounts Receivable favourable or unfavourable? 119,917 13,589 || II II II = 11 "I = Trend percent = 111111 = = = 11 = = = 2020 $ 170,800 87,108 11,683 Trend percent…
- The gross profit margin indicates how profitable sales have been. Q.1 Calculate the gross profit margin for Pearson & Litt for 2020.Q.2 Explain the results of the gross profit margin calculation.Compute trend percents for the following accounts using 2020 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favourable or unfavourable Sales Cost of goods sold Accounts receivable 2024: 2023: 2022: Numerator 2021: 2020: Is the trend perc for Net Sales Numerator: 2024 $ 569,653 298,670 27,514 Numerator: 7 Trend Percent for Net Sales: 1/ V IM 2023 $367,518 192,609 21,426 able or unfavourable? W 2022 $ 290,528 154,575 19,843 Trend Percent for Cost of Goods Sold: Denominator: 7 A Denominator: 2024: 2023: BALLER 2022: 2021: 2020: Is the trend percent for Cost of Goods Sold favourable or unfavourable? Trend Percent for Accounts Receivable: Denominator: 2024: 2023: 2022: 2021: 2020: is the trend percent for Accounts Receivable favourable or unfavourable? $ 197,638 103,972 11,522 TA E L i E 13 B 17 B 13 E # F F 2020 $ 148,600 77,272 10,164 Trend percent Trend percent Trend percent 88888 % % % % %Question content area top Part 1 (Related to Checkpoint 8.3) (CAPM and expected returns) a. Given the following holding-period returns, LOADING... Month Sugita Corp. Market 1 2.4 % 1.0 % 2 −1.0 2.0 3 0.0 3.0 4 0.0 0.0 5 7.0 7.0 6 7.0 1.0 , compute the average returns and the standard deviations for the Sugita Corporation and for the market. b. If Sugita's beta is 1.84 and the risk-free rate is 6 percent, what would be an expected return for an investor owning Sugita? (Note: Because the preceding returns are based on monthly data, you will need to annualize the returns to make them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.) c. How does Sugita's historical average return compare with the return you should expect based on the Capital Asset…
