Chee​ Chew's portfolio has a beta of 1.29 and earned a return of 13.8 % during the year just ended. The​ risk-free rate is currently 4.7 % . The return on the market portfolio during the year just ended was 10.7 % .

a.Calculate​ Jensen's measure​ (Jensen's alpha) for​ Chee's portfolio for the year just ended.

b.Compare the performance of​ Chee's portfolio found in part a to that of Carri​ Uhl's portfolio, which has a​ Jensen's measure of negative 0.17 . Which portfolio performed​ better? Explain.

c.Use your findings in part a to discuss the performance of​ Chee's portfolio during the period just ended.

a.The​ Jensen's measure​ (Jensen's alpha) for​ Chee's portfolio is nothing . ​(Round to two decimal​ places.)

b.​ Chee's portfolio, with a JM of ▼ 1.36 -0.17 ​, outperformed​ Carri's portfolio, with a JM of negative 0.17 . A ▼ positive negative JM indicates that the ▼ actual required return exceeds the ▼ actual required return. A ▼ positive negative return on a portfolio means that it did not earn its ▼ actual required return.  

Chee​ Chew's portfolio has a beta of 1.23 and earned a return of 13.8% during the year just ended. The​ risk-free rate is currently 4.7%. The return on the market portfolio during the year just ended was 11.2%.

a. Calculate​ Jensen's measure​ (Jensen's alpha) for​ Chee's portfolio for the year just ended.

b. Compare the performance of​ Chee's portfolio found in part a to that of Carri​ Uhl's portfolio, which has a​ Jensen's measure of negative - 0.18 Which portfolio performed​ better? Explain.

c. Use your findings in part a to discuss the performance of​ Chee's portfolio during the period just ended.

a.The​ Jensen's measure​ (Jensen's alpha) for​ Chee's portfolio is ___. ​(Round to two decimal​ places.)

​ b. Chee's portfolio, with a JM of ____

▼

1.11

-0.18

outperformed​ Carri's portfolio, with a JM of

negative −0.18. A_________

▼

positive

negative

JM indicates that the _____

▼

actual

required

return exceeds the ____

▼

actual

required

return. A ____

▼

positive

negative

return on a portfolio means that it did not earn its ____

▼

actual

required

return. (Select from the​ drop-down menus.)

c. Use your findings in part a to discuss the performance of​ Chee's portfolio during the period just ended.  ​(Select the best answer​ below).

A. Based on its positive JM​, Chee's portfolio has performed Worse than the market.

B. Based on its negative JM​, Chee's portfolio has performed better than the market.

C. Based on its positive JM​, Chee's portfolio has performed better than the market

D. Based on its negative JM​, Chee's portfolio has performed worse than the market.

An investment project will cost the firm $200,000 now. The additional cash flows earned as a result of the investment are $30,000 in the first year; $50,000 in the second year; $75,000 in the third year; $90,000 in the fourth year; and $120,000 in the fifth year. After that, the investment results in no further increases in cash flows. Assuming cash flows are evenly distributed throughout the year, the payback period for this investment is ______.

A. five years

B. four years

C. three and a half years

D. We cannot answer this question without knowing the cost of capital.

Discuss the prevalence of the use of earned-value analysis to track and control costs on construction projects?

What is the amount of interest earned in the 33rd semi-annual deposit interval of a sinking fund that is set up to pay back a debt of $220000 over 19 years? The fund earns 4.62% compounded semi-annually and the deposits are made semi-annually.

The BouchonCompany started its operations many years ago.  The balance sheet for December 31, 2017, showed the following account balances, in dollars (there were no other accounts listed):

Cash 827; Paid in capital 1,000; Loan from bank (0% interest) 800; Dividend payable 100; Accumulated depreciation 250; Inventory 300; Retained earnings 334; Accounts receivable 400; PP&E 1,500; Accounts payable 250; Wages payable 103; Rent payable 30; Advances from customers 160;

During 2018the following transactions occurred:

1. Bouchon took another 0% interest loan from the bank, on January 1, 2018, in the amount of $600.
2. Purchases of inventory were $654 (all on credit), and payments to suppliers were $704.
3. A dividend in the amount of $168 was declared during 2018. On December 31, 2018, the Dividend payable account balance was $18.
4. The employees of Bouchon were paid $154, which was $8 more than what they earned during the year.
5. a. Total sales during 2018 were $1,435. Part of the sales relate to advances received during 2017. As of December 31, 2018, Bouchon has no more obligations related to advances from customers. Cash sales were $750, and credit sales were $525.

b. All current and past customers have paid their accounts in full by the end of the year.  

6. Cost of Goods Sold exceeded purchases of inventory by $6.
7. Depreciation expense was $225.
8. The owner of Bouchon decided to take a second job, flipping burgers at the local McDonalds, for $60 a month, in order to cover their daughter’s tuition at an Ivy League University.  
9. Rent expense for the year was $180; rent payments were $256 (all to the same landlord and for the office space to which the Rent payable balance on December 31^st, 2017 relates).
10. A fully depreciated machine, with an original cost of $210 and a salvage value of zero, was sold for $100, in cash.  

Required:

1. Record all the transactions that occurred during 2018 (you may use the accounting equation method or journal entries).
2. Prepare an income statement for the year ended December 31, 2018.
3. Prepare a balance sheet for December 31, 2018.
4. Prepare a statement of cash flows for the year ended December 31, 2018 using the indirect metho

Batman Motors, Inc. (BMI) sells both new and used cars and also provides car repair and maintenance services. BMI is 100% owned by Robin, an individual. BMI buys its cars using a line of credit from Little Penguin Bank. The LoC requires monthly payments of interest. The interest payment is due on the first of each month for the prior month’s interest. Interest expense through the end of October was $525,000. At the end of November, BMI’s principle on the LoC was $9,585,000 and the interest rate for November (it is a floating rate based on the US prime rate) was 6.5% annually. At the end of December, the balance on the LoC was $10,750,000 and the interest rate had reset to 6.25%. Each June 30^th, the LoC is “refreshed” with a new LoC where the old one is paid off and a new one is implemented.

BMI offers extended warranty products to the buyers of used cars. The warranty lasts for 1 year or 15,000 miles, whichever comes first and covers 100% of any non-routine maintenance and repairs. The cost of each warranty is $2,500 per vehicle. Buyers are not required to purchase the extended warranty, but are highly encouraged by the sales people and the finance people who work for BMI. BMI expects to incur, on average, $925 of costs in the future per used car sold.

Buyers of new cars can also buy “care packages” for their new cars which cover 100% of routine maintenance and any repairs not covered by the manufacturer’s warranty. Generally, this package covers a 1 year period from the date of purchase of the new car and costs $4,250. If the buyer chooses, the amount can be included in the overall purchase of the car and financed as long as the financing is done through Batman Motor Credit (BMC). The expected cost of providing these services on a per car basis is $1,750.

BMI does business in the Elk Grove auto mall in Elk Grove California. California also requires registration and DMV fees to be collected and remitted by BMI directly to the state. For both new and used cars, the state requires 9% of the car purchase cost to be collected and remitted as fees/registration. BMI has 10 days after month end to calculate and remit the total amount collected for the fees/registration.

BMI has three general types of employees and each group is compensated differently. The first group consists of sales people who are paid based on a flat fee of $60 per car they sell plus a commission of 8% of the agreed upon sales price. Commissions are paid on the 15^th of each month based upon the prior calendar month (i.e. December sales commissions will be paid on January 15^th). Sales people do not accrue any vacation, but are considered employees.

The second group consists of the mechanics and other service related personnel. These folks are paid hourly and average hourly pay for this group is $45/hour. Service people accrue 2 weeks of vacation annually and are limited to a maximum accrual at any one time of 10 days of vacation. Vacation is paid only when an employee either leaves the company or takes their time off in a subsequent year. There are 15 service people employees, 12 of whom have maxed their accrual. The other three have used all of their earned vacation. BMI’s service department is open every day except Sunday, but no one is allowed to work more than 40 hours per week to avoid overtime costs.

The third group consists of the remainder of the administrative team, including the finance folks and any other people necessary to running the overall business. There are 10 of these people and each of them is paid a fixed salary. Average monthly salary for this group is $150,000. All of them earn more than the Social Security wage limit. These folks get 15 days of vacation per year, and all of them have maximized their accrual at the end of the year.

As Robin is the sole owner of BMI, but does not do any actual work for the Company, she takes money out of the corporation monthly to help pay her personal expenses. Her monthly distribution is $25,000 and is paid on the 10^th of each month. Her legal team has advised her to make sure to document this transaction every single month in the monthly corporate meeting minutes.

The local utility bills BMI on the 18^th of each month for the prior month’s use of electricity, water, garbage and all other public utility costs. The actual bill received in January of the prior year was $2,200. BMI has not done any expansion during 2018. BMI’s average utility bill for each month was $2,350.

In January, a local law firm served notice to BMI that it had been retained by an individual who had purchased a used car from BMI and that was involved in an accident on December 28, 2018. The plaintiff is suing for physical, emotional and other damages totaling $1 million. BMI has passed the notice on to their outside lawyers but plans on vigorously contesting the suit on any grounds available.

Because it is December, BMI has also sold a significant amount of gift cards. The gift cars are sold in minimum increments of $100 and are redeemable only for services, not against purchase of vehicles. During December, BMI sold 1,300 gift cards and had 365 redeemed for services during December, and another 375 redeemed in January. At the beginning of December, the un-redeemed gift cards totaled 975 cards (all of which were sold during 2018), of which 120 were between 12-15 months old. BMI’s policy is to begin breaking gift cards after the card is outstanding for 18 months.

During December, BMI sold the following number of cars:

Used cars sold:    180

Average used car sales price    $10,975

Extended warranties purchased:     169

New cars sold:           270

Average new car sales price:    $32,450 before tax, license, and other

Care packages sold     200

Because BMI met its target sales for the year, the President of BMI was awarded a bonus of $125,000, payable at the end of January after all of the audit work is done to confirm the total sales during the entire year. The President is part of the administrative team.

Robin understands the value of an audit of the financial numbers, so hires an outside auditing firm to ensure that the financial statements are correctly stated under GAAP. She agrees with the firm to complete the audit by the end of January 2019 and pays in advance for ½ of the agreed upon total fee. The total fee for the audit is $54,000. The remainder will be paid upon delivery of the auditor opinion as part of the financial statements.

November ending balances, if you need them: extended warranty $145,000; care package liability $295,600; Deferred revenue $975,000; accrued vacation $375,000.

REQUIRED:

1.Calculate and present all journal entries necessary based on the above information. To receive credit, you MUST show all of your work (showing me your formulas is not necessary) and a journal entry in proper DR and CR format, including an explanation for the entry.

2.Calculate and present the income statement accounts for the month of December and the balance sheet accounts as of December 31, 2018. You do not have to present a balanced balance sheet, as you do not have sufficient information for that.

Problem 05 Empirical Rule : Several years of final exam scores in statistics courses for a local university are normally distributed with a mean of 81 and a standard deviation of 8. If the lowest 2.5% of the scores on this test qualifies for a failing grade (F), use the empirical rule to calculate the score a student would need on this test to pass the final exam? show your work integer answer

Problem 08 Expected Value and Life Insurance Payouts : There is a 0.9985 probability that a randomly selected 60-year-old female lives through the year U.S. Department of Health and Human Services. A Fidelity life insurance company charges $180 for insuring that the female will live through the year. If the female does not survive the year, the policy pays out $100,000 as a death benefit.

1. From the perspective of the 60-year-old female, what are the monetary values corresponding to the two events of surviving the year and not surviving?

2. If a 60-year-old female purchases the policy, what is her expected value?

3. Can the insurance company expect to make a profit from many such policies? Why?

Problem 11 Continuous Random Variables: Empirical Rule:  Scores on an examination are assumed to be normally distributed with mean 78 and variance 10. Suppose that students scoring in the top 10% of this distribution are to receive an A grade. If you are asked “What is the minimum score a student must achieve to earn an A grade?”, can you use the empirical rule to answer this question? Explain your answer.

The US is Australia’s major export market for beef. Suppose that the mad cow disease hits the US and causes a shortfall in US beef production. Using a three-panel diagram, explain the effect of the mad cow disease on the US’s and the world’s beef market. (Hint: Consider the US as a large country in this case). (10 pts.)

Reading code that you haven't written is a skill you must develop. Many times you are correcting this code that you didn't write so you have to 1) read the code, 2) find the errors, and 3) correct them.

You are going to correct a program that has several errors in it (specifically, one error per function).

• You should begin by looking at what the expected output of the program should be for various inputs.
• Then, run the code and identify the error that occurs.
• Next, go to the code and correct the mistakes.
• Run the code again to see if you did it correctly. Be sure to test with different inputs.
• Record the error you found in the comment at the top of the function.
• Repeat this until you have found all 4 errors

When the program is correct, it should have output like this:

Enter 3 test scores:
Enter your test score >  100
Enter your test score >  90
Enter your test score >  91

Wow! You scored 90 or above on all your exams!
Keep up the As!

Your test average is 93.66666666666667
You earned an A

# Describe the error found in this function:

#

def get_grade():

grade = input("Enter your test score > ")

return grade

# Describe the error found in this function:

#

def all_As(test1, test2, test3):

if test1 > 89:

if test2 > 89:

if test3 > 89:

print("Wow! ", end="")

print("You scored 90 or above on all your exams!")

print("Keep up the As!")

print()

# Describe the error found in this function:

#

def calc_average(test1, test2, test3):

return test1 + test2 + test3 / 3

# Describe the error found in this function:

#

def letter_grade(grade):

if grade >= 90:

print("You earned an A")

if grade >= 80:

print("You earned an B")

if grade >= 70:

print("You earned an C")

if grade >= 60:

print("You earned an D")

if grade < 60:

print("You earned an F")

from grades import (

all_As,

calc_average,

get_grade,

letter_grade

)

# THERE ARE NO ERRORS IN THE MAIN

# YOU DO NOT NEED TO CHANGE THE MAIN

#-----main-----

print("Enter 3 test scores:")

first_test = get_grade()

second_test = get_grade()

third_test = get_grade()

print()

all_As(first_test, second_test, third_test)

average = calc_average(first_test, second_test, third_test)

print("Your test average is",average)

letter_grade(average)