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The modified Dietz method [1] [2] [3] is a measure of the ex post (i.e. historical) performance of an investment portfolio in the presence of external flows. (External flows are movements of value such as transfers of cash, securities or other instruments in or out of the portfolio, with no equal simultaneous movement of value in the opposite direction, and which are not income from the ...
[] is the expected value of the excess of the asset return over the benchmark return, and is the standard deviation of the asset excess return. The t-statistic will equal the Sharpe Ratio times the square root of T (the number of returns used for the calculation). The ex-post Sharpe ratio uses the same equation as the one above but with ...
Any asset that can be liquidated and converted into cash within one year is a current asset. Cash, cash equivalents, unrestricted shares and inventory are some examples of current assets. What are ...
This method estimates the value of an asset based on its expected future cash flows, which are discounted to the present (i.e., the present value). This concept of discounting future money is commonly known as the time value of money. For instance, an asset that matures and pays $1 in one year is worth less than $1 today.
The fundamental components of the accounting equation include the calculation of both company holdings and company debts; thus, it allows owners to gauge the total value of a firm's assets. However, because accounting is kept on a historical basis, the equity is typically not the net worth of the organization.
The net asset value formula is calculated by adding up what a fund owns and subtracting what it owes. For example, if a fund holds investments valued at $100 million and has liabilities of $10 ...
An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees.
Step 3: Apply the Asset Turnover Ratio Formula. Since you have the value of net sales and average total assets, use the following formula: Asset turnover ratio = net sales divided by average total ...