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galina1969 [7]
2 years ago
5

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

Business
1 answer:
elena-s [515]2 years 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.

To learn more about mutual funds from given link

brainly.com/question/14967316

#SPJ4

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3 years ago
Walmart's customers have come to expect to find P&amp;G products in stores, and P&amp;G depends on Walmart to purchase a good po
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vertical marketing system

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4 years ago
J Industries will pay a regular dividend of $2.40 per share for each of the next four years. At the end of the four years, the c
likoan [24]

Answer:

The answer is: liquidating dividend should be $62.07.

Explanation:

Let denote the amount of liquidating dividend to be X => The present value of liquidating dividend amount is X/1.1^4; given discount rate is 10% and liquidating dividend will be paid in 4 year times.

We have:

Present value of regular dividend stream + Present value of liquidating dividend = Current share price

=> (2.4/10%) x [1 - 1.1^(-4) ] + X/1.1^4 = 50 <=> X/1.1^4 = $42.39 <=> X = 1.1^4 x 42.392 = $62.07.

So, The answer is: liquidating dividend should be $62.07.

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3 years ago
Which of the following statements accurately brings out the difference between a perfectly competitive industry and a monopolist
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Answer:

its d

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industry has the freedom to raise prices

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