Sheet2
What is the Sharpe ratio, Treynor ratio, and Jensen’s alpha for each portfolio? (Negative values should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your Sharpe ratio answers and Treynor ratio answers to 5 decimal places and Jensen's alpha answers to 2 decimal places. Omit the "%" sign in your response.)
Portfolio RP σP βP Portfolio Sharpe Ratio Treynor Ratio Jensen's Alpha Cannot figure out the Treynor Jensen's or Market
X 16.5 % 37 % 1.40 X %
Y 15.5 32 1.15 Y %
Z 7.4 22 .70 Z %
Market 11.8 27 1.00 Market %
Risk-free 5.2 0 0
Sheet3
A stock has an annual return of 13 percent and a standard deviation of 61 percent. What is the smallest expected loss over the next year with a probability of 5 percent? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Smallest expected loss %
Sheet4
A stock has an annual return of 10.4 percent and a standard deviation of 41 percent. What is the smallest expected gain over the next year with a probability of 1 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Smallest expected gain %
Sheet5
Problem 13-19
Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97.
Year Fund Market Risk-Free
2008 –20.60 % –39.5 % 1 %
2009 25.1 21 3
2010 13.9 13.9 2
2011 7.6 8.8 4
2012 –2.10 –5.2 2
What are the Sharpe and Treynor ratios for the fund? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Sharpe ratio Need answer
Treynor ratio Need answer
Sheet6
Problem 13-20
Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .95.
Year Fund Market Risk-Free
2008 –19.40 % –37.5 % 1 %
2009 25.1 20.8 4
2010 13.7 13.3 2
2011 7.2 8.4 6
2012 –1.98 –4.2 2
Calculate Jensen’s alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Round your Jensen’s alpha answer to 2 decimal places and Information ratio answer to 4 decimal places. Omit the "%" sign in your response.)
Jensen’s alpha % Need Answer
Information ratio Need Answer
Sheet7
Problem 17-3
You are given the following information for Smashville, Inc.
Cost of goods sold: $ 234,000
Investment income: $ 2,600
Net sales: $ 397,000
Operating expense: $ 92,000
Interest expense: $ 7,400
Dividends: $ 12,000
Tax rate: 40 %
Current liabilities: $ 20,000
Cash: $ 21,000
Long-term debt: $ 22,000
Other assets: $ 42,000
Fixed assets: $ 131,000
Other liabilities: $ 5,000
Investments: $ 46,000
Operating assets: $ 47,000
Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Gross margin %
Operating margin %
Return on assets % Cannot figure this one out?
Return on equity % Cannot figure this one out?
Sheet8
Problem 17-6
The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes):
Income Statement
Sales $ 6,400
Costs (4,480 )
Net income $ 1,920
Balance Sheet
Assets $ 19,200 Debt $ 9,900
Equity 9,300
Total $ 19,200 Total $ 19,200
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $7,808. What is the external financing needed? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole dollar. Omit the "$" sign in your response.)
EFN $
Cannot figure out EFN?
Sheet9
Problem 17-11
The most recent financial statements for Martin, Inc., are shown here:
Income Statement
Sales $ 29,500
Costs -18,000
Taxable income $ 11,500
Taxes (34%) -3,910
Net income $ 7,590
Balance Sheet
Assets $ 82,600 Debt $ 30,000
Equity 52,600
Total $ 82,600 Total $82,600
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,165 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $33,630. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
EFN $
Cannot figure out EFN?
Sheet10
Problem 17-14
Amounts are in thousands of dollars (except number of shares and price per share):
Kiwi Fruit Company Balance Sheet
Cash and equivalents $ 480
Operating assets 760
Property, plant, and equipment 3,000
Other assets 165
Total assets $ 4,405
Current liabilities $ 980
Long-term debt 1,375
Other liabilities 175
Total liabilities $ 2,530
Paid in capital $ 395
Retained earnings 1,480
Total equity $ 1,875
Total liabilities and equity $ 4,405
Kiwi Fruit Company Income Statement
Net sales $ 6,700
Cost of goods sold (4,900 )
Gross profit $ 1,800
Operating expense (530 )
Operating income $ 1,270
Other income 160
Net interest expense (200 )
Pretax income $ 1,230
Income tax (250 )
Net income $ 980
Earnings per share $ 1
Shares outstanding 980,000
Recent price $ 43.5
Kiwi Fruit Company Cash Flow Statement
Net income $ 980
Depreciation and amortization 220
Increase in operating assets (100 )
Decrease in current liabilities (112 )
Operating cash flow $ 988
Net (purchase) sale of property $ 200
Increase in other assets (73 )
Investing cash flow $ 127
Net (redemption) issuance of LTD $ (168 )
Dividends paid (182 )
Financing cash flow $ (350 )
Net cash increase $ 765
Calculate the price-book, price-earnings, and price-cash flow ratios for Kiwi Fruit. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Price-book ratio Need Answer
Price-earnings ratio Need Answer
Price-cash flow ratio Need Answer
0.10
0.10
0.32
0.32
0.30540
0.30540
17.88
17.88
41.06
41.06
0