Finance

Which of the following is a "higher the better" measure?

Which of the following is a "higher the better" measure?

Which of the following is a "higher the better" measure?

▸ only Sharpe's measure

▸ only Treynor's measure

▸ only Jensen's measure

▸ All three are "higher the better" measures.

Trey4sho   27   1 Reply

Loveameriah

Which of the following are reasons to consider selling an investment that is currently in a ...

Which of the following are reasons to consider selling an investment that is currently in a ...

[html]Which of the following are reasons to consider selling an investment that is currently in a portfolio?

aznhermit101   35   1 Reply

flash33101

Treynor's measure of portfolio performance focuses on

Treynor's measure of portfolio performance focuses on

Treynor's measure of portfolio performance focuses on

▸ nondiversifiable risk.

▸ diversifiable risk.

▸ total risk.

▸ the standard deviation of the portfolio.

thedrunkmind   32   1 Reply

mr.pogi

The Sharpe's measure for Jane Smith's investment portfolio is 0.40, while the Sharpe's measure ...

The Sharpe's measure for Jane Smith's investment portfolio is 0.40, while the Sharpe's measure ...

[html]The Sharpe's measure for Jane Smith's investment portfolio is 0.40, while the Sharpe's measure for the market is 0.30. This information suggests that Smith's portfolio

▸ exhibits superior performance because its risk premium per unit of risk i

JohnCena494   30   1 Reply

culwri204

The process of selling certain issues in a portfolio and purchasing new ones to replace them is known as

The process of selling certain issues in a portfolio and purchasing new ones to replace them is known as

The process of selling certain issues in a portfolio and purchasing new ones to replace them is known as

▸ portfolio revision.

▸ market timing.

▸ red herring baiting.

▸ dollar cost averaging.

freckles   36   1 Reply

traumajeff

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to

[html]Sharpe's measure of portfolio performance compares the risk premium on a portfolio to

▸ a broad-based market index such as the S&P 500 index.

▸ the portfolio's standard deviation of return.

▸ the portfolio's beta.

▸ the prevailing risk-free

katiemarie   48   1 Reply

krissyc39

Phil has a portfolio with a 13.2% total return. The beta of the portfolio is 1.48 and the standard ...

Phil has a portfolio with a 13.2% total return. The beta of the portfolio is 1.48 and the standard ...

[html]Phil has a portfolio with a 13.2% total return. The beta of the portfolio is 1.48 and the standard deviation is 13%. Currently, the risk-free rate of return is 4% and the overall market has a total return of 11%. What is the value of Treynor's

brettlaw   110   1 Reply

LeonKennedyS

Ella's portfolio has a beta of 1.34 and a standard deviation of 16.4%. The portfolio has a total ...

Ella's portfolio has a beta of 1.34 and a standard deviation of 16.4%. The portfolio has a total ...

[html]Ella's portfolio has a beta of 1.34 and a standard deviation of 16.4%. The portfolio has a total return of 14.8%. The market risk premium is 8.5%, while the return on the market portfolio was 12.0%.  What is the value of Sharpe's measure for El

aznmistyblue   81   1 Reply

twnklstr

Allison's portfolio has an expected return of 14% and a standard deviation of 20%. Brianna's ...

Allison's portfolio has an expected return of 14% and a standard deviation of 20%. Brianna's ...

[html]Allison's portfolio has an expected return of 14% and a standard deviation of 20%.  Brianna's portfolio has an expected rate of return of 11% and a standard deviation of 12%.  The risk-free rate is 3%. According to the Sharpe measure,

▸ Alliso

pmiller1129   40   1 Reply

niecey

Allison's portfolio has a beta of 1.5 and earns a return of 15%. Brianna's portfolio has a beta of ...

Allison's portfolio has a beta of 1.5 and earns a return of 15%. Brianna's portfolio has a beta of ...

[html]Allison's portfolio has a beta of 1.5 and earns a return of 15%.  Brianna's portfolio has a beta of 1.0 and earns a return of 11%.  The risk-free rate is 3%. According to the Treynor measure,

▸ Allison has the better portfolio.

▸ Brianna has

cheesyboots   28   1 Reply

astroasis

Allison's portfolio has a beta of 1.37 and earns a return of 14%. Brianna's portfolio has a beta ...

Allison's portfolio has a beta of 1.37 and earns a return of 14%. Brianna's portfolio has a beta ...

[html]Allison's portfolio has a beta of 1.37 and earns a return of 14%.  Brianna's portfolio has a beta of 0.8 and earns a return of 11%.  The risk-free rate is 3% and the expected rate of return on the market is 12%. According to the Jensen's measur

SeaBass2013   54   1 Reply

Saharak

A portfolio has a total return of 14.5%, a beta of 1.54, and a standard deviation of 17.6%. If the ...

A portfolio has a total return of 14.5%, a beta of 1.54, and a standard deviation of 17.6%. If the ...

[html]A portfolio has a total return of 14.5%, a beta of 1.54, and a standard deviation of 17.6%. If the risk free rate is 4.5% and the market return is 10.2%, then Treynor's measure of this portfolio's performance is

▸ 2.8%.

▸ 3.7%.

▸ 6.5%.

▸ 9.

Cell6   50   1 Reply

moon21c

A portfolio has a total return of 14.4%, a standard deviation of 18.5% and a beta of 1.43. The risk ...

A portfolio has a total return of 14.4%, a standard deviation of 18.5% and a beta of 1.43. The risk ...

[html]A portfolio has a total return of 14.4%, a standard deviation of 18.5% and a beta of 1.43. The risk free rate is 2.5%, the market rate of return is 11.4%, and the market's Treynor measure is 6.3. What is the value of the Treynor measure of this

tw1gg   43   1 Reply

ixi12

A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk ...

A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk ...

A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk free rate is 3.8%, the market return is 12.4%. Jensen's measure of this portfolio's performance is

▸ 0.5%.

▸ 4.3%.

▸ 7.9%.

▸ 9.3%.

ogf78   46   1 Reply

kayekalico

The Witney Growth Fund, a no-load mutual fund, had a net asset value per share of $54.28 one year ...

The Witney Growth Fund, a no-load mutual fund, had a net asset value per share of $54.28 one year ...

[html]The Witney Growth Fund, a no-load mutual fund, had a net asset value per share of $54.28 one year ago. Its current net asset value is $56.93. During the year it paid out dividends and capital gains of $2.08 per share. It has a beta value of 1.7

remmylp   59   1 Reply

mlwpcd

One year ago, Matt bought 100 shares of ACE Corp. stock for $5,619 including commission. He is about ...

One year ago, Matt bought 100 shares of ACE Corp. stock for $5,619 including commission. He is about ...

[html]One year ago, Matt bought 100 shares of ACE Corp. stock for $5,619 including commission. He is about to sell the ACE stock for $6,528 net of commissions. When he made the purchase the S&P 500 index was at 907; now it is 1070. The beta of ACE st

ktpizzle1993   52   1 Reply

jwmaro

Explain the type of risk measured by each of the following measures. Also identify the factor in ...

Explain the type of risk measured by each of the following measures. Also identify the factor in ...

[html]Explain the type of risk measured by each of the following measures. Also identify the factor in each formula that determines the type of risk that is being measured.

apple321   42   1 Reply

revanchist

The holding period return measures only the capital appreciation of an investment.

The holding period return measures only the capital appreciation of an investment.

The holding period return measures only the capital appreciation of an investment.

▸ true

▸ false

johnnyappleseed   39   1 Reply

capsy2

The calculation of returns on options and futures must consider income as well as capital gains.

The calculation of returns on options and futures must consider income as well as capital gains.

The calculation of returns on options and futures must consider income as well as capital gains.

▸ true

▸ false

pmiller1129   29   1 Reply

rion20000

Returns for periods greater than one year should be measured using the internal rate of return.

Returns for periods greater than one year should be measured using the internal rate of return.

Returns for periods greater than one year should be measured using the internal rate of return.

▸ true

▸ false

rsteel   34   1 Reply

apina

Only capital gains that have been realized should be included in the measurement of a portfolio's ...

Only capital gains that have been realized should be included in the measurement of a portfolio's ...

Only capital gains that have been realized should be included in the measurement of a portfolio's return over a given period of time.

▸ true

▸ false

thunter609   40   1 Reply

teamroket

Marianne is in the 30% marginal tax bracket. For her, a 5% return on a tax-exempt portfolio is ...

Marianne is in the 30% marginal tax bracket. For her, a 5% return on a tax-exempt portfolio is ...

Marianne is in the 30% marginal tax bracket.  For her, a 5% return on a tax-exempt portfolio is equivalent to a 6.5% return on a taxable portfolio.

▸ true

▸ false

spiderman13   50   1 Reply

mkql12

Investors need to consider the effects of taxes and transaction fees when measuring portfolio returns.

Investors need to consider the effects of taxes and transaction fees when measuring portfolio returns.

Investors need to consider the effects of taxes and transaction fees when measuring portfolio returns.

▸ true

▸ false

alidinak   24   1 Reply

deathnature9

Holding period return (HPR) captures total return performance by considering current income and ...

Holding period return (HPR) captures total return performance by considering current income and ...

Holding period return (HPR) captures total return performance by considering current income and capital gains and is most appropriate for holding periods of one year or less.

▸ true

▸ false

gisellerol   35   1 Reply

micp3537

A rational investor will require the same return from a corporate security as from a government security.

A rational investor will require the same return from a corporate security as from a government security.

A rational investor will require the same return from a corporate security as from a government security.

▸ true

▸ false

bananas87   34   1 Reply

danterich

Twelve months ago, Javier purchased a stock for $28 a share. The stock pays a quarterly dividend of ...

Twelve months ago, Javier purchased a stock for $28 a share. The stock pays a quarterly dividend of ...

Twelve months ago, Javier purchased a stock for $28 a share. The stock pays a quarterly dividend of $0.45 per share. Today, Javier sold the stock for $26.75 a share. What is his holding period return?

▸ -4.46%

▸ 1.96%

▸ 6.73%

▸ 19.6%

lovepink1122   56   1 Reply

cskeen80

To compute the holding period return on a bond investment, the investor should divide the purchase ...

To compute the holding period return on a bond investment, the investor should divide the purchase ...

[html]To compute the holding period return on a bond investment, the investor should divide the purchase price of the bond into

▸ any increase or decrease in the bond's price.

▸ the annual coupon payment.

▸ the bond's yield to maturity.

▸ coupon

zer0latency   36   1 Reply

navgil

Tim purchased a stock ten months ago for $14 a share, received a $1 dividend per share last month, ...

Tim purchased a stock ten months ago for $14 a share, received a $1 dividend per share last month, ...

[html]Tim purchased a stock ten months ago for $14 a share, received a $1 dividend per share last month, and sold the stock today for $16 per share. Tim has a marginal tax rate of 30%. Both capital gains for securities held more than one year and div

tifftran   144   1 Reply

ladwer

The holding period return for mutual funds should be based on

The holding period return for mutual funds should be based on

[html]The holding period return for mutual funds should be based on

▸ net asset value exclusively.

▸ dividend income exclusively.

▸ capital gains distributions exclusively.

▸ capital gains distributions, dividends and change in net asset value.[/

AsadQ1   37   1 Reply

thomas1993

Ten years ago, Taylor purchased 444.44 shares in a mutual fund for $22.50 per share. He has never ...

Ten years ago, Taylor purchased 444.44 shares in a mutual fund for $22.50 per share. He has never ...

[html]Ten years ago, Taylor purchased 444.44 shares in a mutual fund for $22.50 per share. He has never made an additional investment in this fund, but because of reinvested dividends and capital gains, he now owns 1,200 shares with a net asset value

pjw1979   42   1 Reply

nilabmirzada

Six months ago, Suzanne purchased a stock for $28 a share. Today she sold the stock at a price of ...

Six months ago, Suzanne purchased a stock for $28 a share. Today she sold the stock at a price of ...

[html]Six months ago, Suzanne purchased a stock for $28 a share. Today she sold the stock at a price of $32 a share. During the time she owned the stock, she received a total of $1.30 in dividends per share. What is her holding period return?

▸ 16.6

Tonyt   52   1 Reply

culwri204

On January 1, Tim's portfolio was valued at $432,098. During the year Tim received $10,563 in ...

On January 1, Tim's portfolio was valued at $432,098. During the year Tim received $10,563 in ...

[html]On January 1, Tim's portfolio was valued at $432,098. During the year Tim received $10,563 in interest and $15,060 in dividends. He also sold stock at a net loss of $12,870 and used the proceeds to purchase another stock. Tim did not contribute

Hareplity   37   1 Reply

bruce2710

On January 1, Stacy's portfolio was valued at $96,534. During the year Stacy received $3,285 in ...

On January 1, Stacy's portfolio was valued at $96,534. During the year Stacy received $3,285 in ...

[html]On January 1, Stacy's portfolio was valued at $96,534. During the year Stacy received $3,285 in interest and $4,100 in dividends. She also sold one stock at a gain of $850. The value of the portfolio on December 31 of the same year was $113,201

johnboycs   119   1 Reply

rpascua

On February 19, 2020, Angela purchased 100 shares of BRD stock at a total cost of $3,425. She ...

On February 19, 2020, Angela purchased 100 shares of BRD stock at a total cost of $3,425. She ...

[html]On February 19, 2020, Angela purchased 100 shares of BRD stock at a total cost of $3,425. She received a total of $250.00 in dividends and sold the stock today, February 22, 2021 for $3,692.  Angela has a marginal tax rate of 28%.  The tax rate

mickied   49   1 Reply

localbabe10

Maria purchased $5,000 of no-load mutual fund shares just over a year ago. She received $136 in ...

Maria purchased $5,000 of no-load mutual fund shares just over a year ago. She received $136 in ...

[html]Maria purchased $5,000 of no-load mutual fund shares just over a year ago. She received $136 in dividend income and $201 in long-term capital gains distributions. Today she sold her shares for $5,062. Maria is in the 25% marginal tax bracket. C

Passa Caglia   43   1 Reply

sbbalt

Juan's investment portfolio was valued at $125,640 at the beginning of the year. During the year, ...

Juan's investment portfolio was valued at $125,640 at the beginning of the year. During the year, ...

[html]Juan's investment portfolio was valued at $125,640 at the beginning of the year. During the year, Juan received $603 in interest income and $298 in dividend income. Juan also sold shares of stock and realized $1,459 in capital gains. Juan's por

qwertybio   32   1 Reply

micapiro

Investors who wish to minimize the effect of taxes on their investment returns should try to avoid

Investors who wish to minimize the effect of taxes on their investment returns should try to avoid

Investors who wish to minimize the effect of taxes on their investment returns should try to avoid

▸ dividend paying stocks.

▸ short-term capital gains.

▸ long-term capital gains.

▸ municipal bonds.

Earthgirl225   25   1 Reply

olskee

For a stock investment, the dividend yield is calculated by

For a stock investment, the dividend yield is calculated by

[html]For a stock investment, the dividend yield is calculated by

▸ dividing a stock's annual cash dividend by its price.

▸ dividing a stock's price by its annual cash dividend.

▸ multiplying a stock's semi-annual dividend by two.

▸ dividing the

Tonyt   36   1 Reply

silvermoon197

An investor in the 25% marginal tax bracket purchased a bond for $983, received $85 in interest, and ...

An investor in the 25% marginal tax bracket purchased a bond for $983, received $85 in interest, and ...

[html]An investor in the 25% marginal tax bracket purchased a bond for $983, received $85 in interest, and then sold the bond for $955 after holding it for six months. The tax rate for capital gains with holding periods in excess of one year is 15%.

endah87   36   1 Reply

naderaide

The key areas to monitor when evaluating your portfolio holdings are the overall performance of both ...

The key areas to monitor when evaluating your portfolio holdings are the overall performance of both ...

The key areas to monitor when evaluating your portfolio holdings are the overall performance of both the economy and the financial markets, and the returns on your investments.

▸ true

▸ false

MrsSmitty   35   1 Reply

pedro0811