Ajax Company Was Founded in 2009

question 35

True/False

Ajax Company was founded in 2009. Its yearly earnings are shown here:
2012: Net income of $4,000
2013: Net income of $23,000
2014: Net income of $2,000
2015: Net loss of $30,000
No dividends were paid. At the end of the year 2015, Ajax would have a Retained earnings deficit of $1,000.

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Definitions:

Wildcat Fund

An investment fund that takes higher risks with the expectation of higher returns, often investing in speculative ventures.

Sharpe Measure

A metric used to gauge the performance of an investment by adjusting for its risk, calculated as the difference between the investment's return and the risk-free rate, divided by the investment's standard deviation.

Risk-Free Return

The theoretical return on an investment with zero risk of financial loss, often represented by the return on government securities.

Treynor's Measure

A performance metric for determining how well an investment portfolio has compensated the investor for the risk taken, using beta as the risk measure.