Assuming no changes in other variables, which of the following would decrease ROA? C . An increase in average assets.

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: Why do most assets of the same type show positive covariances of returns with each other?

A: Covariance is a way of measuring the directional relationship between the returns on two assets and…

Q: what is the effect of making changes to net present value calculations

A: Net Present Value = Present value of future cashflows - Initial Investment

Q: What is return on assets(roa)?

A: In general terms, ROA is similar to  Return on Investment.

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: Expected return and standard deviation a.  What is the expected return of asset​ b?

A: The expected return is the return that an investor expects on its investment under various…

Q: Which of the following correctly orders the investment rules of average accounting return (AR),…

A: Capital budgeting is method of selecting projects among available projects so as to increase value…

Q: quantitative risk analysis:

A: Quantitative risk analysis assess the risk associated with a particular monetary item.

Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…

A:

Q: Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital…

A: Quick assets are the highly liquid assets that include all the current assets except inventory and…

Q: Why is the operating return on assets ratio also referred to as the operating returnon investment?

A: Introduction: Operating asset return is nothing but a profitability measure and it is a difference…

Q: Which type of average rate of return best describes the average annual rate of return earned over…

A: A mutual fund's average yearly return is a percentage that indicates the fund's historical average…

Q: What is the difference between cumulative return and annualized return/CAGR). Provide an example

A: There are two methods to measure the rate of return annual basis and cumulative basis.

Q: what the meaning of current assets ratio?

A: Assets are the rights and resources being held by the business. Assets that are either in cash or…

Q: Assuming an increase in price levels over time, which of the following asset valuations will produce…

A:

Q: Which of the following scenarios can increase the return on assets? a. Increase the current and…

A: Return on Assets = Net Profits / Total Assets

Q: is CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha used to Evalua

A: Step 1   Portfolio management involves trading between risk and return. Most novice investors make…

Q: Assets are usually valued at?   a.Historical Cost b. Residual Value c. Net Realizable Value d.…

A: Assets are the resources that are owned by the organizations. Assets can be current or non-current.

Q: Describe the process to invest in two assets with similar return characteristics?

A: The investment in any asset depends upon the risk and return of the particular asset and security.…

Q: Which of the following is not an asset utilization ratio

A: Asset Utilization Ratio: This ratio computes the total sales/revenue earned for every dollar of…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.