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1 year ago

Explain the meanings of market timing and security selection, highlighting their similarities and differences.

Business

1 answer:

elena-s [515]1 year ago

8 0

<h3>What Is Market Timing?</h3>

Market timing is the act of moving investment funds into or out of financial markets – or moving funds between asset classes – based on predictive methods. If an investor can predict when the market will go up and down, they can trade to turn that market movement into a profit.

<h3>What is security selection?</h3>

Security selection is the process of determining which financial stocks to include in a particular portfolio. Good stock picks can generate profits during market ups and downs and climate losses during bear markets.

Security selection implies picking individual stocks that the fund manager expects will outperform the market as a whole. Market timing implies betting on systematic risk factors. We see that Swedish equity mutual funds engage in both these types of active behaviour.

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Jack and Scotty begin negotiations where Scotty will give Jack hockey lessons for a certain amount of money per week. While they

nika2105 [10]

Answer:

The best option is a.

The court will award Scotty a reasonable amount for the lessons he already taught.

Explanation:

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3 years ago

You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. At the e

erma4kov [3.2K]

Answer:

Monthly payment = $769.27

Explanation:

First we have to determine the future value of the ordinary annuity:

Payment = $235.15

N = 20 * 12 = 240

Rate = 3.2% / 12 = 0.267%

Using a financial calculator and the FV function, the FV = $78,910.41

Again, using the financial calculator or Excel, you can determine the monthly payment:

N = 10 / 12 = 120

Rate = 0.267%

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Monthly payment = $769.27

8 0

2 years ago

After identifying various market segments that her company could pursue, Linda evaluated each segment's attractiveness based on

sashaice [31]

Answer:

Market Targeting

Explanation:

This is a process of identifying different segments of a market's attractiveness and identifying a particular one to enter.

It guides towards making the best decision at market selection stage ,that will be of a great value to the organization..

The two basic stages involved are evaluating the market and selecting market target segments and targeting strategy.

Size and growth , attractiveness ,income , accessibility and availability of resources are factors to be considered during the process

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2 years ago

Indirect materials include ______. multiple choice question. supervisor salaries salt and pepper laptop computer keyboards facto

Kobotan [32]

Indirect materials include <u>salt and pepper.</u>

<u></u>

What are indirect materials ?

Indirect materials are goods that, while part of the overall manufacturing process, are not integrated into the final product.
For example, disposable gloves, personal protective equipment, tape, etc., may be essential to a production line, but they are not part of the actual product created on that line.
When cost savings take priority, it’s important to control spending and compliance by using a unified source-to-pay (S2P) platform for indirect materials.
Among S2P platforms, cloud-native ones offer the best functionality: they are easy to set up, deploy, learn and use, and they offer real-time, end-to-end visibility.
Unlike indirect materials, direct materials are components that are integrated into a manufactured product.
For example, chips in a mobile phone are direct materials in mobile phone production.

To know more about indirect materials, refer:

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5 0

1 year ago

LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620

Gnom [1K]

Answer:

LeCompte Corp.

The profit margin that LeCompte Corp. would need in order to achieve the 15% ROE, holding everything else constant is:

A) 7.57%.

Explanation:

a) Data and Calculations:

Assets = $312,900

Common Equity = Assets = $312,900

Sales for the last year = $620,000

Net income after taxes = $24,655

Expected return on equity (ROE) = 15%

ROE (in amount) = $312,900 * 15% = $46,935

Profit margin = Returns on Equity/ Sales * 100

= $46,935/$620,000 * 100

= 7.57%

b) The expected returns on equity in dollars is equal to the net income. Therefore, we can use the ROE to calculate the profit margin. The profit margin expresses the relationship between sales and profit. It shows the profit made from each dollar sales.

4 0

2 years ago