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1 year ago

Explain the initial entry strategy of passive vs. active. give an example for each.

Business

1 answer:

Scrat [10]1 year ago

3 0

What is passive Strategy?

An investment approach for long-term investors is passive investing. By replicating an index, it seeks to maximise market returns while avoiding frequent trading. Investors benefit from a reduction in the costs or fees associated with active trading or active investment.

What is active strategy?

An active investment strategy is one that actively buys and sells companies with specific characteristics using the information obtained by qualified stock analysts. With higher returns and/or lower risk, the goal is to outperform index and overall stock market performance.

Passive Strategy:

- search, listen, respond

- good way to start

- seek out mentions of your business, its competitors in your industry

- simply saying thank you and answering questions is a great first step

Active Strategy:

- marketer creates content and engages in conversations through different SM channels

- connects with key influencers

- many brands jump to this step (step 2) without understanding their audience or preferred interaction

To learn more about active and passive Strategy

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Answer:

$38.02

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3 years ago

Crane Company borrowed $750000 from BankTwo on January 1, 2019 in order to expand its mining capabilities. The 5-year note requi

Daniel [21]

Answer:

The interest expense of $59,463 must be recognize on its 2020 income statement.

Explanation:

With the given data make an amortization schedule

Hint : First determine the Future Value of the 5-year note

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interest expense = $71,250

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interest expense = $59,463

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The interest expense of $59,463 must be recognize on its 2020 income statement.

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3 years ago

As a business owner, explain the importance of scanning the internal and external environment of a business.

maw [93]

Answer:

1. Identification of strength

2.identificationof weakness

3. Identification of opportunity

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8 0

3 years ago

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make l

bagirrra123 [75]

Answer:

The equilibrium price would increase, and the equilibrium quantity would decrease.

Explanation:

With an increase in the cost of steamed milk, the cost of materials, one of the key factors in pricing decision would rise, which means that the equilibrium price of lattes would also increase. With an increase in price, according to the law of demand, there is a decrease in demand. Therefore, the quantity of lattes sold at the new equilibrium price would decrease.

The equilibrium price would increase, and the equilibrium quantity would decrease.

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3 years ago

Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales a

DerKrebs [107]

Answer:

d. 2.24%

Explanation:

total annual sales = $3,600,000

fixed asset turnover = total sales / fixed assets = 4, that means that total fixed assets = $3,600,000 / 4 = $900,000

debt = 50% = $450,000

equity = 50% = $450,000

EBIT = $150,000

net income = $150,000 x (1 - 40%) = $90,000

restricted policy:

asset turnover = 2.5

sales = $3,600,000 x (1 - 15%) = $3,060,000

EBIT = $135,000

net income = $81,000

assets = $3,060,000 / 2.5 = $1,224,000

equity = $1,224,000 x 50% = $612,000

ROE = $81,000 / $612,000 = 13.24%

relaxed policy:

asset turnover = 2.2

EBIT = $150,000

net income = $90,000

assets = $3,600,000 / 2.2 = $1,636,364

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ROE = $90,000 / $818,182 = 11%

difference between ROEs = 13.24% - 11% = 2.24%

8 0

3 years ago