1) Indicate which of the following ratios are classified as Liquidity, Risk, Operating or Value ratios. Provide just one response for each (16 marks).

Ratio	(liquidity,risk,operating performance, value)
a) Current Ratio
b) Asset Coverage
c) Inventory Turnover
d) Dividend Yield
e) Debt/Equity
f) Gross Profit Margin
g) Return on Common Equity
h) EPS

2) A client bought a stock for $50/share and sold it for $70/share.

Inflation during the period was 3%. What is the investors real return?

Show all calculations. (10 marks)

3) The expected rate of return on Toms portfolio is 18%. His fund manager is expected to achieve this return with a risk of 1.5 Standard Deviation. Given that the risk free rate of return is 3%, what is the risk adjusted rate of return -Sharpe Ratio? (10 marks)

4) Larry bought 500 shares of TD Bank at $75 per share. Two years later he sold all the shares for $80 each. Excluding commission cost, what is the total return on the stock?

(10 marks)