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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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The primary measure of a nation's level of development is its _____.

Veronika [31]

The answer is per capita gross domestic product. The per capita GDP is the one responsible for measuring the country’s total output in which they take their GDP and are being divided by how many are the people in their own country.

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3 years ago

T Company expects to incur the following per unit costs for 1,000 units of production: Direct materials of 4 pounds per unit at

Vladimir [108]

Answer:

Total overhead = = $7,500

so here correct option is E. $7,500

Explanation:

given data

production = 1,000 units

direct labor = ¼ hour @ $24 per hour

variable overhead = 75 % of direct labor

fixed overhead = $3,000

to find out

total amount of overhead

solution

we first find Direct labor that is

Direct labor = ¼ × 24

Direct labor = $6

Total overhead will be here

Total overhead = Variable overhead + Fixed overhead .................1

now put here value we get

Total overhead = ($6 × 75% ) × 1,000 + $3,000

Total overhead = = $7,500

so here correct option is E. $7,500

8 0

3 years ago

everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w

posledela

Interest rates would increase since the tax-exempt status of municipal bonds would lose some of its appeal and there would be less of a market for them as a result of the lower income tax rates.

When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.

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1 year ago

Which of the following is an owner of a fee simple absolute NOT able to do...? Lease the property to another Pledge the property

xxTIMURxx [149]

Answer:

Correct Answer:

4. Build beyond the property line of the land

Explanation:

Fee simple absolute is an estate in land, which is a form of freehold ownership. It is a way that real estate and land may be owned in common-law countries. And, also is the highest possible ownership interest that can be held in real property.

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3 years ago

eastern hotel corp. pays a constant $7.80 dividend on its stock. the company will maintain this dividend for the next 13 years a

Lesechka [4]

The stock is now trading at $52.16 per share.

The current value of an annuity of n regular payments of P at r% with yearly payments is provided by:

PV = P × (1 -( $(1 + r) ^{-n}$ ÷r))

Estes Park Corp. distributes a fixed rate of a dividend of P = $7.80 per share on its shares. The corporation will retain this dividend for the following n = 13 years before ceasing dividend payments permanently. If the necessary returns on this stock are not metis r = 11.2% = 0.112.

The actual share price is calculated as follows:

Current share price = $7.80 × (1 -( $(1 + 0.112) ^{-13}$ ÷0.112))

$7.80 × ((1 - 0.251) ÷ 0.112)

$52.16

Therefore, the current share price is $52.16