You have been appointed as the new investment manager for Retire-Easy Investments. In your first meeting with your investment team and analysts you have set out what the goals and performance targets of the team should be as Retire-Easy investment funds have underperformed compared to your benchmarks over the past five (5) years.
Q: The semiconductor business of the Calfornia Microtech Corporation qualities as a component of the…
A: Introduction Income from continuing operations accounts for income from regular business activity,…
Q: On June 30, 2021, Streeter Company reported the following account balances: $ (16,100) (74, 250)…
A: The company must account for the goodwill when it purchases another company. The goodwill represents…
Q: At an interest rate of 0.06 per year, the present worth of the maintenance cost is nearest to
A: Given PV=5000 Increasing =500 n=15 r=0.06 or 6%
Q: Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year…
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: ratios listed on table a for each year (2020 & 2021): a. For each ratio includes the formula with…
A: The answers have been mentioned below.
Q: PROBLEM 1 On August 1, Barreto Company exchanged a machine for a similar machine owned by Blakey…
A: Commercial substance in a business transaction means that the future cash flows of the transaction…
Q: What follows are a number of resources that are used by a manufacturer of futons. Assume thatthe…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: A frim has net working capital of $509, net fixed assets of $2,336, sales of $7,000 and current…
A: The sales to total assets can be calculated by dividing total sales by total assets. The total asset…
Q: what is the cost of the new animal shelter? Shuler Dog Care Co. wants to finance a new animal…
A: Interest rate = 6% Annual deposit for first 4 years = $24000 Annual deposit for next 4 years =…
Q: Bronzini enters into Fish partnership by contributing the following: Cash $15,600; Accounts…
A: The entire capital of a partner is equal to the sum of their capital and current account balances.…
Q: Tax rate is 20 % STCG is 320000 Salary income is 150000 Maximum exemption is $170000 Tax liability…
A: Formula: Tax liability amount = Taxable income x Tax rate
Q: at is the rate earned on total assets for 2014? 2. What is the rate earned on stockholders' equity…
A: Return on assets and return on equity are two measures to measure efficiency and profitability of…
Q: Design a salary slip for the month of December 2021 with information given below. Fixed vs variable…
A: Salary Slip For the salary slip it comes the details of basic salary with the HRA and DA and travel…
Q: Data regarding a company's monthly sales for the last six months of the year and its projected…
A: Budgeted Cash receipts for September = (Budgeted credit Sales for August X 57%) + (Budgeted Sales…
Q: Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: Required Prepare journal entries to record the above transactions 1
A: Initial Transaction Translate at the historic rate on 1 Jan 2022 FC200000/1.18 = $169,491 Dr.…
Q: A company currently in the 3rd month of a 2 year project. Ihe financial committee would like to h a…
A: The budget at completion is the total budget of the project.
Q: Salter Mining Co. purchased the Northern Tier Mine for $61 million cash. The mine was estimated to…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Singer Company adjusts its account annually. Below is extracted from the trial balance of the…
A: Allowance Method - Under allowance, the method company makes provision of uncollectible accounts at…
Q: 1. Ms. Anna Frozen operates an ice cream store while she offers bookkeeping services to her clients.…
A: Answer:- Tax Liability:- Tax liability can be defined as the payment owing to a union, state, or…
Q: Inventory, May 1 $ 156,000 Purchases (gross) 663,700 Freight-in 31,500 Sales revenue 1,061,800 Sales…
A: Formula: Net purchases = Gross purchases - Purchase discounts + freight in
Q: Analytical procedures are often performed on accounting ratios. Discuss the usefulness of analytical…
A: Final analytical procedures are performed to have an overall review of the financial statements. It…
Q: per year will accum
A: Deposit = 33047 $ Interest rate = 10 % Time = 10 years
Q: 7. The records of Lunch Co. on December 31, 20x1 show following information: Debits Credits…
A: An income statement is one of the important statements in a company's financial statements that…
Q: Provide the necessary accounting entries: A patent right is acquired July 1,2021, for P250,000;…
A: A patent is an intangible asset. The amount of patent is amortized as compared to depreciation in…
Q: costs are an important noice for a company. WI nas annual benefits of $:
A: Operating costs refer to the expenses born by a company for running its daily activities.
Q: Problem 1. The Balance Sheet of 3A7 Corporation at the end of the firs years of operations indicate…
A: The question is related to Ratio Analysis. The details are given regarding the same.
Q: Calculate the proprietary ratio from the following information: Fixed Assets 12,80,000 Current…
A: Calculation of Proprietary Ratio Proprietary Ratio = Shareholders' Funds/ Total Assets Proprietary…
Q: My question is this: GIPI will depreciate the gymnasium building using the straight-line method over…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: What is the payback period? Round up to the next month Use the following table:
A: Year Cash outflows Cash inflows Net cash flow Cumulative Cashflows Payback period 0 -240000…
Q: Project B D E Initial Investment 3,300 -6,500 5,300 -7,000 -5,500 Annual Benefit 650 1,200 950 1,250…
A: The answer has been mentioned below.
Q: A company uses activity-based costing. The company makes two products: A and B. The annual…
A: Product margin refers to the difference between sales value and cost of goods sold. It is also known…
Q: e) 11,200 Accumulated Depreciation-old melter (straight-line) 6,300 Secondhand fair value of old…
A: Depreciation is a term used in accounting to describe a method of allocating the cost of a tangible…
Q: MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000.…
A: Depreciation per annum using the straight line method = (cost - residual value)/ useful life =…
Q: Raw material purchased OMR150000,closing stock raw material OMR 53000, Paid freight charges OMR 7000…
A: Formula: Raw material consumed = Beginning raw materials + Purchases during the period + Freight…
Q: Healthy Meal completed the following selected transactions. i (Click here to see the transactions.)…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Supplies $ 32,000 Service Revenue $ 110,000 Supplies Expense 9,000 Salaries and Wages Expense 38,000…
A: There are generally two type of accounts being used by the business. One is temporary accounts and…
Q: Markup and margin as percentages are equal. O True O False
A: Answer: Markup and Margin as percentage are equal. FALSE The profit margin is 30% when expressed as…
Q: help
A: All the non cash items debited shall be added and non cash items credited shall be deducted. When…
Q: On January 1, 2021, Brianne Company acquired 30% of the voting share capital of another entity for…
A: Gain on sale of investment = P 4500000 - (50% x P5000000) = P2000000
Q: Compute AMT (if any) if Ms. White's taxable income on her single return was $650,675, and her AMTI…
A: Under the AMT, an individual taxpayer is subject to rates of 28% for AMTI over $199,900 for…
Q: Belinda, a 55 year old single woman with no dependents, has a $75,000 gröup term life insurance…
A: Answer:- Term life insurance definition:- A term insurance policy is one of the most basic and…
Q: Virginia has business property that is stolen and partially destroyed by the time it was recovered.…
A: The book value of Property = 14,000 $ loss in the book value = 10,000 $ New book value = 4,000$…
Q: A business that purchases items to place into their inventory to resell may purchase the items…
A: Its True that A business that purchases items to place into their inventory to resell may purchase…
Q: ABC Co. and DEF Co. are joint venturers of XYZ Co., a producer of high tech machinery. ABC and DEF,…
A: Joint Venture Joint venture which is described as the business combination of two or more members…
Q: create 2 problems (required must vary) for each type of depreciation. 1. Straight Line Method 2.…
A: Depreciation Calculation There are different method in which depreciation can be calculated in the…
Q: Account Insurance Expense Cash at Bank Supplies Accounts Payable Sales Revenue Accounts Receivable…
A: Formula: Net income = Total Revenues - Total Expenses.
Q: On 1 November 20X4, XBL Communications Ltd. issued a convertible bond that was convertible in 12…
A: Convertible Bond: Unlike other types of corporate debt securities, convertible bonds pay interest…
Q: Unit VI question 5
A: The contribution margin is calculated as difference between sales and variable costs. Break even…
Good evening please help me with this question
Step by step
Solved in 2 steps
- Use the following to answer questions a. – f. a. What is the alpha for Fund B? b. Based on alpha, which fund displays superior performance? c. What is the Sharpe ratio for Fund B? d. Based on the Sharpe ratio, which fund displays superior performance? e. Suppose you are an investment counselor with a new client, Jonsey, and that Funds A and B are the only options available in Jonsey's company sponsored retirement account. Jonsey has no other investments. Which fund would you recommend, and why? f. What additional evidence would make you more confident in your recommendation, that is, more confident that the fund you recommend has the ability to perform in the future? (Hint: The answer has nothing to do with the Treynor Index.)During the annual review of Acme’s pension plan, several trustees questioned their investment consultant about various aspects of performance measurement and risk assessment.a. Comment on the appropriateness of using each of the following benchmarks for performance evaluation:∙ Market index.∙ Benchmark normal portfolio.∙ Median of the manager universe.b. Distinguish among the following performance measures:∙ The Sharpe ratio.∙ The Treynor measure.∙ Jensen’s alpha.i. Describe how each of the three performance measures is calculated.ii. State whether each measure assumes that the relevant risk is systematic, unsystematic, or total. Explain how each measure relates excess return and the relevant risk.You are an employee at XYZ Bank. Your Bank is trying the construct an investment portfolio that matches its resources and goals. To do so, you and your team are required to evaluate the investment options available for your Bank and decide what is the best option to choose. A B C D E Value of the position 1,400,500 1,370,050 750,000 450,300 1,700,650 Duration 5 3 5 4 6 YTM 4% 3% 7% 8% 5.50% Potential adverse move in yield 0.30% 0.26% 0.43% 0.56% 0.37% Correlation A B C D E A 1 0.5 0.3 0.1 -0.2 B 1 0.2 -0.3 0.4 C 1 0.2 -0.3 D 1 -0.4 E 1 Weight A B C D E Scenario I…
- a. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests in stocks, bonds, short-term money market instruments and other securities. The performance of these mutual funds and the portfolio they build needs to be evaluated as frequently as possible. Evaluating the performance of these mutual funds is important for both existing and potential investors. The Table below provides the average return, standard deviation and betas of selected equity mutual funds over a period of three years. The average risk free rate for the period is estimated at 15%. Portfolio Average return Standard Deviation Beta Portfolio A 27.62 16 1.2 Portfolio B 20.12 15 0.9 Portfolio C 26.25 12 1.05 GSE return(benchmark) 16.18 10 1.0 Required:Estimate and compare the performance of the funds with the market using:i. Treynor’s measureii. Sharpe’s measureiii. Jensen’s Measure b. The issuing of security goes through a number of…During the annual interview of Acme's Pension Plan, several trustees questioned Lucy Graham a pension consultant,about various aspects of performance measurement and risk assessment. In particular, one trustee asked about the appropriateness of using each of the following benchmarks; I). Market index II). Benchmark normal portfolio III). Median of the manager universe IV). Explain 2 different weaknesses of using each of the three benchmarks to measure the performance of a portfolioPrimo Management Company is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios and is interested in trying this approach. As such, the company hired Sally Jones, CFA, as a consultant to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. For the sake of discussion, Jones put together some comparative two-year performance numbers that relate to Primo’s current domestic funds under management and a potential benchmark. Style Category Weight Return Primo Benchmark Primo Benchmark Large-cap growth 0.60 0.50 17% 16% Mid-cap growth 0.15 0.40 24 26 Small-cap growth 0.25 0.10 20 18 As part of her analysis, Jones also takes a look at one of Primo’s global funds. In this particular portfolio, Primo is invested…
- Primo Management Company is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios and is interested in trying this approach. As such, the company hired Sally Jones, CFA, as a consultant to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. For the sake of discussion, Jones put together some comparative two-year performance numbers that relate to Primo’s current domestic funds under management and a potential benchmark. Style Category Weight Return Primo Benchmark Primo Benchmark Large-cap growth 0.60 0.50 17% 16% Mid-cap growth 0.15 0.40 24 26 Small-cap growth 0.25 0.10 20 18 As part of her analysis, Jones also takes a look at one of Primo’s global funds. In this particular portfolio, Primo is invested…Primo Management Company is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios and is interested in trying this approach. As such, the company hired Sally Jones, CFA, as a consultant to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. For the sake of discussion, Jones put together some comparative two-year performance numbers that relate to Primo’s current domestic funds under management and a potential benchmark. Style Category Weight Return Primo Benchmark Primo Benchmark Large-cap growth 0.60 0.50 17% 16% Mid-cap growth 0.15 0.40 24 26 Small-cap growth 0.25 0.10 20 18 As part of her analysis, Jones also takes a look at one of Primo’s global funds. In this particular portfolio, Primo is invested…Primo Management Co. is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios and is interested in trying this approach. As such, the company hired Sally Jones, CFA, as a consultant to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. For the sake of discussion, Jones put together some comparative 2-year performance numbers that relate to Primo's current domestic funds under management and a potential benchmark. Style Category weight of Primo Large-cap growth Mid-cap growth 0.15 Small-cap growth 0.60 0.25 weight of Benchmark 0.50 0.40 0.10 return of Primo return of Benchmark (%) (%) 17 23 19 14 26 17 Calculate the contribution to performance of the pure sector allocation. Round your answer to two decimal place. Do not…
- Imagine that you are a financial manager researching investments for your client. Think of a friend or a family member as a client. Define their characteristics and goals such as an employee or employer, relatively young (less than 40 years) or close to retirement, having some savings/property, a risk taker or risk averter, etc. Next, use Nexis Uni at the Strayer University library, located at Nexis Uni, click on “Company Dossier” to research the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client. Your investment should align with your client’s investment goals. (Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. You will create an appendix, in which you will insert related information.) Provide a rationale for the stock that you selected, indicating the significant economic, financial, and other factors that led you to consider this stock. Suggest the…Mr. Ota is an analyst for a large pension fund and he has been assigned the task of evaluating two different external portfolio managers (K and C). He considers the following historical average return, standard deviation, and CAPM beta estimates for these two managers over the past five years: Actual Average Standard deviation Portfolio Beta Return Manager K Manager C 7.80% 10.05% 0.75 12.0% 15.50% 1.45 Additionally, Mr. Ota estimate for the risk premium for the market portfolio is 5.40% and the risk-free rate is currently 2.50%. a. For both Managers K and C, calculate the expected return using the CAPM. Express your answers to the nearest basis point (i.e., xX.XX%)You are an employee at XYZ Bank. Your Bank is trying the construct an investment portfolio that matches its resources and goals. To do so, you and your team are required to evaluate the investment options available for your Bank and decide what is the best option to choose. A B C D E Value of the 1,400,500 1,370,050 750,000 450,300 1,700,650 position Duration 5 4 6 YTM 4% 3% 7% 8% 5.50% Potential adverse move 0.30% 0.26% 0.43% 0.56% 0.37% in yield Correlation A. В D E A 1. 0.5 0.3 0.1 -0.2 B 1 0.2 -0.3 0.4 1 0.2 -0.3 D 1. -0.4 E Weight А В D E Scenario I 30.00% 10.00% 60.00% Scenario II 50.00% 30.00% 20.00% Scenario III 50.00% 50.00%
