1. Explain why using long time series of portfolio returns increases the risk of bias, and short time series increases the risk of estimation error, when estimating Sharpe ratios. You may use an example to illustrate your answer.
2. ABC's Days Sales Outstanding was 35.2 days this year, on sales of 394,000. What is the amount of ABC's Accounts Receivable?
3. ABC Company's Accounts Receivable Turnover Ratio is 11.8. If sales increase next year from 651,000 to 501,000, by how much will Accounts Receivable change? (if it is negative, remember to input the negative sign).