In 2007,Claudia's Gems Had Net Sales of $220,000,a Cost of Goods

question 104

Essay

In 2007,Claudia's Gems had net sales of $220,000,a cost of goods sold of $69,000,customer returns of $21,000,and vendor discounts of $9,000.Calculate the store's gross margin.

---

Definitions:

Treynor-Black Model

A special case of the Markowitz model of efficient diversification, derived by assuming returns are generated by the index model.

Residual Variance

The variance of the error terms in a regression model, representing the amount of variation that cannot be explained by the model's inputs.

Alpha/Beta

Measures in finance; Alpha represents the strategy's returns above the benchmark, whereas Beta indicates the volatility relative to the market.

Sharpe Measure

A measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy, calculated as the difference between the asset's returns and the risk-free rate, divided by the asset's standard deviation.