A. Using the data in the table below alculate the following performance measures. i. Sharpe ratio
ii. Treynor measure
iii. Jensen’s alpha
iv. M-squared measure
v. T-squared measure, and
vi. Appraisal ratio (information ratio)
Fund
(Average (Standard (Beta (Unsystematic
Return) Deviation) Coefficient) Risk)
A 0.240 0.220 0.800 0.017
B 0.200 0.170 0.900 0.450
C 0.290 0.380 1.200 0.074
D 0.260 0.290 1.100 0.026
E 0.180 0.400 0.900 0.121
F 0.320 0.460 1.100 0.153
G 0.250 0.190 0.700 0.120
Market 0.220 0.180 1.000 0.000
Risk-free
return 0.050 0.000
6*3marks = 18 marks
b. Out of the performance measures you calculated in part a., which one would you use under
each of the following circumstances:
i. You want to select one of the funds as your risky portfolio.
ii. You want to select one of the funds to be mixed with the rest of your portfolio,
currently composed solely of holdings in the market-index fund.
iii. You want to select one of the funds to form an actively managed stock portfolio.

In the rbv are defined as the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies.answers: management policies

The following accounts appeared in recent financial statements of delta air lines. identify each account as either a balance sheet account or an income statement account. for each balance sheet account, identify it as an asset, a liability, or stockholders' equity. for each income statement account, identify it as a revenue or an expense. item financial statement type of account accounts payable balance sheet advanced payments for equipment balance sheet air traffic liability balance sheet aircraft fuel (expense) income statement aircraft maintenance (expense) income statement aircraft rent (expense) income statement cargo revenue income statement cash balance sheet contract carrier arrangements (expense) income statement flight equipment balance sheet frequent flyer (obligations) balance sheet fuel inventory balance sheet landing fees (expense) income statement parts and supplies inventories balance sheet passenger commissions (expense) income statement passenger revenue income statement prepaid expenses income statement taxes payable balance sheet

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.