A Negative Sharpe Ratio Indicates

question 71

Multiple Choice

A negative Sharpe ratio indicates

• A) a contrarian management style.
• B) a portfolio which failed to beat the performance of the risk free asset.
• C) a portfolio which is well managed.
• D) the portfolio's raw return was great than its standard deviation
• E) None of the above.

Differentiate between the impact of various transactions on balance sheet and income statement accounts.

Calculate bad debt expense using different estimation methods.

Execute journal entries for writing off uncollectible accounts, reinstating accounts, and recording bad debt expenses.

Compute the maturity value of promissory notes and understand how notes receivable and payable are accounted.

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Definitions:

Compound Interest

Interest calculation that encompasses both the initial principal and the cumulative interest that has accrued in preceding periods on a deposit or loan.

Simple Interest

A way of calculating interest where the interest charge is based on the original principal amount alone.

Compounded Annually

A method of calculating interest where the interest amount is added to the principal sum at the end of each year, affecting the total interest for the next year.

Interest on Interest

The compound interest that is calculated not only on the initial principal but also on the accumulated interest of previous periods.