Consider the two (excess return) index-model regression results for stocks a and b. the riskfree rate over the period was 7%, and the market’s average return was 12%. performance is measured using an index model regression on excess returns.

stock a stock b
index model regression estimates 1% + 1.2(rm – rf) 2% + .8(rm – rf)
r-square 0.623 0.46
residual standard deviation, σ(e) 11.1% 19.9%
standard deviation of excess returns 22.4% 26.5%

a. calculate the following statistics for each stock: (round your answer to 4 decimal places. omit the "%" sign in your response.)

i. alpha
ii. information ratio
iii. sharpe measure
iv. treynor measure

b. which stock is the best choice under the following circumstances?

i. this is the only risky asset to be held by the investor.

ii. this stock will be mixed with the rest of the investor’s portfolio, currently composed solely of holdings in the market-index fund.

iii. this is one of many stocks that the investor is analyzing to form an actively managed stock portfolio.

On january 1, 2018, johnstone leased an office building. terms of the lease require johnstone to make 15 annual lease payments of $134,000 beginning on january 1, 2018. a 10% interest rate is implicit in the lease agreement. at what amount should johnstone record the lease liability on january 1, 2018, before any lease payments are made?

Part i a company's cereal is not selling well. create a 10-15-question survey that measures customers' preferences for the company's cereal product. then, answer the following questions: how many scale items will you put in the survey? justify your answer. will you use multiple-choice questions? why or why not? how many scale points will you use in the survey? justify your answer. what data type will be used in the survey? justify your answer. part ii as a second part of this assignment, create a set of survey questions, assuming that you sell cars. you are attempting to measure how customers perceive the quality of the cars that you sell. create three survey questions with simple category scales. justify why you selected those questions and scales. create three survey questions with multiple-choice, single-response scales. justify why you selected those questions and scales. create three survey questions with multiple-choice, multiple-response scales. justify why you selected those questions and scales. create three survey questions with likert scale summated ratings. justify why you selected those questions and scales.

On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.