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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.

To learn more about mutual funds from given link

brainly.com/question/14967316

#SPJ4

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Angela's car payment is due January 31. This bill is always paid automatically from her checking account. It is January 30 and A

OlgaM077 [116]

My best guess is B. Transfer money online from her savings account to her checking account. But not certain about my answer. :(

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2 years ago

A customer has purchased 200 shares of ABC at $51 per shaer. The stock is now worth $54 and the customer buys 2 ABC Aug 55 Puts

trapecia [35]

Answer:

$200 loss

Explanation:

The customer's paid in total $51 (market price) + $5 per share (put options) = $56 per share. If the investor exercises the put options, he/she will have a net loss of $55 (put option price) - $56 (cost) = -$1 per share. Since the investor had 200 shares, his/her total loss would equal -$1 x 200 = -$200

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2 years ago

When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivab

liberstina [14]

The answer is that "<span>the change in accounts receivable is subtracted from net income".
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<span>When the indirect method is used, the starting point is the net income and it is transformed to cash flows from operational actions by adding back losses and subtracting gains so that these quantities are removed.</span>

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3 years ago

An investor purchased 100 shares of stock X at \small 6\frac{1}{8} dollars per share and sold them all a year later at 24 dollar

Salsk061 [2.6K]

Answer:

option (C) 280%

Explanation:

Number of shares of stock X purchased = 100

Purchasing cost of share = $\$6\frac{1}{8} =\frac{49}{8}$

Selling cost of stocks = $24 per share

Brokerage paid = 2%

Now,

The total purchasing cost involved = $100\times\frac{49}{8}$ + 2% of $100\times\frac{49}{8}$

= 612.5 + 0.02 × 612.5

= $624.75

also,

Total income from sales of stocks

= Total selling cost of shares - brokerage paid

= $24 × 100 - 2% of Total selling cost

= $2400 - ( 0.02 × $2400 )

= $2400 - $48

= $2,352

now,

The investor's percent gain on this investment = $\frac{\textup{Income-invested amount}}{\textup{Invested amount}}\times100\%$

= $\frac{\textup{2,352 - 624.75}}{\textup{624.75}}\times100\%$

= $\frac{\textup{1727.25}}{\textup{624.75}}\times100\%$

= 276.47% ≈ 280%

Hence, the correct answer is option (C) 280%

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2 years ago

What does going green mean?

Romashka-Z-Leto [24]

Answer:

To save the Earth without polluting it. Going eco-friendly

Explanation:

At least that's what I think.

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2 years ago