An organisation is evaluating whether to continue with its sportswear business unit, given current trading...
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Accounting
An organisation is evaluating whether to continue with its sportswear business unit, given current trading conditions. Over the last 12 months, the business unit generated $1,100,000 in revenue, with expenses of $800,000. The monthly standard deviation was $35,000, and the risk free rate is 5%. Using a 95% Confidence Level what is the RORAC to one decimal place?
Select one:
a. 8.6%
b. 7.1%
c. 7.5%
d. 8.1%
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