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2 years ago

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

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Identify an industry with high fixed costs in the short run

Ganezh [65]

The answer is: Car manufacturers

An industry that have high fixed costs in the short run would be the industry that has to put a high price tag for their products.

Car manufacturers need to provide a high number of capital on the early stage of investments to purchase machines and factory spaces that essential for the efficiency of the production. Due to this hard requirements, there is very little new company enter the competition in car manufacture industries in recent centuries.

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3 years ago

Who is the primary regulator over the<br> mortgage banking industry?

Pie

The primary regulator over the mortgage banking industry in the United States is the Office of the Comptroller of the Currency (OCC).

<h3>What does the Office of the Comptroller of the Currency (OCC) do?</h3>

It was established by the U.S. government to oversee all national banks in the United States.

This means that it is the regulatory agency for any type of banking on the national level including mortgage banks.

Find out more on the Office of the Comptroller of the Currency (OCC) at brainly.com/question/1075384.

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2 years ago

Organized activities by consumers, businesses, and government agencies working together to achieve common goals is called _[blan

Dovator [93]

It's called consumerism

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4 years ago

You have 50,000 pounds of cotton in storage. You don't want to sell the cotton today as you believe the price of cotton will be

Romashka-Z-Leto [24]

Answer:

(b) short futures position

Explanation:

The short futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a fall in the price of the underlying.

The short futures position is also used by a producer to lock in a price of a commodity that he is going to sell in the future.

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4 years ago

Mia has an outside basis of $50,000 in the Brimstone Partnership, including her share of liabilities of $25,000. In a liquidatin

finlep [7]

Answer:

$0 gain or loss

Cash basis $10,000

Inventory $15,000

Explanation:

Calculation for Mia’s recognized gain or loss on the liquidation and basis in the property received

First step is for us to calculate for the outside adjusted basis

Using this formula

Outside adjusted basis=Outside basis - Liabilities

Let plug in the formula

Outside adjusted basis=$50,000 - $25,000

Outside adjusted basis= $25,000

Second step is to calculate for theGain or loss

Using this formula

Gain/Loss=Outside adjusted basis- Cash received - Inside basis

Let plug in the formula

Gain/Loss =$25,000 -$10,000 -$20,000

Gain/Loss = ($5,000)

Based on the above calculation for Mia Gain/loss in which Mia had ($5,000) this means there is $0 gain or loss

Third step is to calculate for the Inventory

Using this formula

Inventory = Cash + Gain/Loss

Let plug in the formula

Inventory =$10,000 + $5,000

Inventory = $15,000

In summary Mai will have $0 gain or loss, the Cash basis amount will be $10,000 while the Inventory amount will be $15,000

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4 years ago