Portfolio  Return  Beta  SD 
A1  0.15  1.25  0.182 
A2  0.1  0.9  0.223 
A3  0.12  1.1  0.138 
A4  0.08  0.8  0.125 
Market  0.11  1  0.2 
RFR  0.03  0  0 
Refer to Exhibit 18.6. Calculate the Jensen alpha Measure for each portfolio.









Consider the following information on largecompany stocks for a period of years. 
Arithmetic Mean  
Largecompany stocks  14.9  % 
Inflation  4.8  
a.  What was the arithmetic average annual return on largecompany stocks in nominal terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 
b.  What was the arithmetic average annual return on largecompany stocks in real terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 
Consider the following information about a university database:
• Each project is managed by one professor. And each project is worked on by one or more professors. but professors can manage and/or work on multiple projects.
• Each project is worked on by one or more graduate students. When graduate students work on a project, a professor must supervise their work on the project. Graduate students can work on multiple projects, in which case they will have a supervisor for each one.
• Departments have a professor who runs the department. professors work in one or more departments, and for each department that they work in, a time percentage is associated with their job.
• Graduate students have one major department. Each graduate student has another, more senior graduate student who advises him or her on what courses to take(advisor).
Professors have an SSN, a name, an age, a rank, and a research specialty. Projects have a project number, a sponsor name (e.g., NSF), a starting date, an ending date, and a budget. Graduate students have an SSN, a name, an age, and average degrees
Departments have a department number, a department name, and a main office.
Create user smith with privilege that allow him to create tables and DB.
Write DDL statements to create the tables.
Write Queries for the following:
a. insert the sample data shown above into the tables
b. Find all information of projects who have managed by each professor
c. Find the names and degrees of graduate students whose degree is better than some graduate students called ali.
d. write a query to retrieve the name of graduate student and student advisor name of all graduate student.
e. Find the number of graduate students who have the same average degrees, average degrees and display new column as average_degrees*average_degrees/2 for each graduate student, and list in the order of age.
f. Write a query to retrieve name of professor, department name and project, for all projects whose budget is greater than 400.
g. Select all those professors who age in the range 30 to 40 and don’t have any rank.
h. List all professors whose name begins with ‘A’ or ‘L’ and age large than 30.
i. List full details of departments that don’t have any graduate students.
j. Find the name and the age of the youngest professors
k. Count the number of different professors names.
l. Find the names of student who have work in all projects.
m. Find the name and the age of the youngest graduate student (use subquery).
n. Find the names of professors supervising graduate students that age >22.
o. Find the ids of professors who have work in an IT department or Science department.
p. Find the names of graduate students who have works on projects with budget >300, and list in the order of budget.
q. Find the ids and names of professors who have work in two different department on the same time.
r. Find the ids and names of professors who managed two different project on the same start date.
s. Find the names of professors who have works in at least one project.
t. Change the name of professor ‘Alex’ to Ali.
u. Delete the record for the student whose name is ‘Ali’ and age 22.
v. add new column to project table with constraint unique and add a default value for it then create view that view names of professors and name of project
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)
Fund P has onethird of its funds invested in each of the three stocks. The riskfree rate is 4.5%, and the market is in equilibrium. (That is, required returns equal expected returns.)

Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.
Actual Return  Actual Weight  Benchmark Weight  Index Return  
Equity  2.6  %  0.5  0.4  3.1% (S&P 500)  
Bonds  1.6  0.2  0.2  1.8 (Barclay’s Aggregate)  
Cash  0.6  0.3  0.4  0.7  
a1. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
a2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
Consider the following information about passengers on a cruise ship on vacation: 40% check work email, 31% use a cell phone to stay connected to work, 25% bring a laptop with them on vacation, 22% both check work email and use a cell phone to stay connected, and 50% neither check work email nor use a cell phone to stay connected nor bring a laptop. In addition 89% of those who bring a laptop also check work email and 71% of those who use a cell phone to stay connected also bring a laptop. With
use the given information to determine the following probabilities. A Venn diagram may help. (Round all answers to four decimal places.)
(j) P(E and L) =
(k) P(C and L) =
(l) P(C(E and L)) =
Consider the following information about a university database:
Each project is managed by one professor. And each project is worked on by one or more professors. but professors can manage and/or work on multiple projects.
Each project is worked on by one or more graduate students. When graduate students work on a project, a professor must supervise their work on the project. Graduate students can work on multiple projects, in which case they will have a supervisor for each one.
Departments have a professor who runs the department. professors work in one or more departments, and for each department that they work in, a time percentage is associated with their job.
Graduate students have one major department. Each graduate student has another, more senior graduate student who advises him or her on what courses to take(advisor).
Professors have an SSN, a name, an age, a rank, and a research specialty. Projects have a project number, a sponsor name (e.g., NSF), a starting date, an ending date, and a budget. Graduate students have an SSN, a name, an age, and average degrees
Departments have a department number, a department name, and a main office.
Consider the following information about passengers on a cruise ship on vacation: 40% check work email, 31% use a cell phone to stay connected to work, 25% bring a laptop with them on vacation, 22% both check work email and use a cell phone to stay connected, and 50% neither check work email nor use a cell phone to stay connected nor bring a laptop. In addition 89% of those who bring a laptop also check work email and 71% of those who use a cell phone to stay connected also bring a laptop. With
use the given information to determine the following probabilities. A Venn diagram may help. (Round all answers to four decimal places.)
(i) P(E and C and L) =
(j) P(E and L) =
(k) P(C and L) =
(l) P(C(E and L)) =
Consider the following information and use it to answer the questions that follow;
A customer owning account 801 is transferring Ksh. 139,500 from his account to an account
998 belonging to one of his business partners. The business partner (owner of account 998) is
also trying to settle a debt of raw materials supplied by one of his suppliers by issuing a
cheque of 150,000. Assume that cheques are debited (credited) immediately after being
deposited.
Assume the bank has a rule that minimum balances cannot go below zero.
What anomaly might have occurred above? Why so?
Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.
Actual Return  Actual Weight  Benchmark Weight  Index Return  
Equity  2.5  %  0.5  0.7  3% (S&P 500)  
Bonds  1.4  0.2  0.2  1.9 (Barclay’s Aggregate)  
Cash  0.8  0.3  0.1  0.9  
a. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
Mean 
Standard Deviation 
N 

Lower Class 
11.36 
2.96 
121 
Working Class 
12.73 
2.79 
676 
Middle Class 
14.40 
3.04 
636 
Upper Class 
15.49 
2.95 
53 
Consider the following information regarding Kent Ltd, a listed company on ASX in Australia.

For the year ended 2018 
For the year ended 2019 
For the year ended 2020

EPS 

$1.875 
$2.975 
DPS 

$0.725 
$0.925

Book Value of Share 
$30.00



Required Equity Return 
7%



Share Price on ASX 
$32.25



Assuming Depression will close operations in 2 years’ time, what would be the residual Income in 2020?
Select one:
a. $0.2565 per share
b. $0.2145 per share
c. $0.3950 per share
d. $0.7945 per share
Consider the following information for Evenflow Power Co., 
Debt:  4,000 7.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.  
Common stock:  100,000 shares outstanding, selling for $61 per share; the beta is 1.1.  
Preferred stock:  13,000 shares of 6.5 percent preferred stock outstanding, currently selling for $105 per share.  
Market:  9 percent market risk premium and 6 percent riskfree rate.  
Assume the company’s tax rate is 32 percent. 
Required: 
Find the WACC. (Do not round your intermediate calculations.) 
11.21%
10.96%
11.63%
10.71%
10.81%
Consider the following information related to Teraa Consulting:
1. On October 1, 2012, Teraa Consulting entered into an agreement to provide consulting
services for six months to Soelberg Company. Soelberg agreed to pay Teraa $750 for each
month of service. Payment will be made at the end of the contract (March 31, 2013).
2. On April 30, Teraa borrowed $40,000 from a local bank at 12%. Th e loan is to be repaid,
with interest, after one year. As of December 31, no interest expense had been recognized.
3. On February 25, Teraa paid $36,000 for 12 months of rent beginning on March 1. On
February 25, Teraa made a journal entry debiting Prepaid Rent Expense.
4. At the beginning of 2012, Teraa had $825 in supplies on hand. During 2012, Teraa
purchased $7,290 in supplies. On December 31, 2012, Teraa had $1,035 in supplies on
hand.
For each item listed, prepare the necessary adjusting entries to be made on December 31,
2012.
Consider the following information for Stocks A,
B, and C. The returns on the three stocks are positively correlated, but they are not perfectly
correlated. (That is, each of the correlation coefficients is between 0 and 1.)
Stock Expected Return Standard Deviation Beta
A 9.55% 15% 0.9
B 10.45 15 1.1
C 12.70 15 1.6
Fund P has onethird of its funds invested in each of the three stocks. The riskfree rate is
5.5%, and the market is in equilibrium. (That is, required returns equal expected returns.)
a. What is the market risk premium (r_{M} – r_{RF})?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15%,
or greater than 15%? Explain.
Consider the following information from a company’s records for 2020:
Feb. 11 
Purchased materials exclusively for use in R&D projects. Of these materials, 30% are left at the end of 2020 and will be used in the same project in 2021 (they have no alternative use). 
$85,000 



Aug. 28 
Construction costs for a new research facility that has been placed in use on this date and is expected to be used to house multiple R&D activities for 20 years. The facility has no expected salvage value. 
600,000 



Aug. 29 
Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for two years, after which it will have no residual value. 
16,000 



Nov. 26 
Salaries paid to employees involved in R&D. 
35,000 



Required:
Compute the amount of R&D expense for 2020. The company normally uses straightline depreciation for plant assets.
$
Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.
Actual Return  Actual Weight  Benchmark Weight  Index Return  
Equity  2.5  %  0.5  0.7  3% (S&P 500)  
Bonds  1.4  0.2  0.2  1.9 (Barclay’s Aggregate)  
Cash  0.8  0.3  0.1  0.9  
a. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
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