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3 years ago

What is the MOST important item to disclose to a customer who invests in a fund of hedge funds?

Business

1 answer:

sergejj [24]3 years ago

5 0

Answer:

<u>A. The illiquidity of the investment</u>

<u>Explanation:</u>

This rightly could be considered as the MOST important item to disclose to a customer who invests in a fund of hedge funds. Let's imagine a customer who invests in a hedge fund and a few days later feels he could take back out from his investment, only to learn about the illiquid nature of hedge fund investment.

For clarity, to say that<em> hedge funds are illiquid means that they require all investors to keep their money in the fund for at least one year, </em>often called the lock-up period. With certain limitations on withdrawals.

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How do natural resources and geography relate to economic growth for a country?

Archy [21]

Answer:

Limited natural resources such as infertile land and lack of coastal access can limit economic growth for a country.

Explanation:

Natural resources are a source of wealth for the country. Mineral such oil and precious stones have made nations wealthy.

Land is a factor of production. Lack of fertile lands will make a nation dependent on imports for its food security. Access to coastal areas facilitates cheaper and fast international trade. Landlocked countries use harbor of other nations for global business. Goods and services from landlocked counties may be more expensive as a result of high transport costs.

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3 years ago

Read 2 more answers

A collateralized mortgage obligation pays a 2% coupon rate on the first tranche plus any prepayments until its $50 million par v

Sloan [31]

Answer:

The correct answer is b) The first tranche has the highest prepayment risk.

Explanation:

A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.

In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.

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3 years ago

1. Match each term with the correct definition. LO1.1 economics opportunity cost marginal analysis utility a. The next-best thin

Stolb23 [73]

Answer:

d. Making choices based on comparing marginal benefits with marginal costs

Explanation:

Opportunity Cost Marginal Analysis in Economics helps managers to understand the idea of opportunity cost in making an additional input for output. Presume a manager realizes that there is space in the budget to employ an additional worker. Marginal analysis tells the manager that an additional worker provides net marginal benefit or not and the manager then decides if to hire one more worker or forgo it for an alternative.

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3 years ago

If a company must expand capacity to accept a special order, it is likely that there will be an increase in unit variable costs.

Lelechka [254]

Answer:

If a company must expand capacity to accept a special order, it is likely that there will be an increase in fixed costs.

Explanation:

The fixed costs are the part of the total costs of production that remain constant during a given reference quantity in a certain period. These include, for example, depreciation of fixed assets or rental or interest expenses. Since fixed costs are incurred regardless of the application quantity (short-term), they cannot be apportioned to the unit costs according to the cause.

In the present case, given that the company must expand its capacity to take the special order, it means that all of its production factors are totally devoted to production, so that in order to produce a greater quantity of goods, the productive factors must be increased, which are part of the fixed production costs that the company has. Therefore, as the costs of production are altered, there will be an increase in fixed costs.

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2 years ago

Product A - proposed lavender ice cream

Lemur [1.5K]

Based on the indicators above, especially the preference of products by consumers, participants preferred <u>Product B (60%)</u> to Product A (40%).

<h3>What is a brand preference?</h3>

Brand preference refers to the choice of a specific company's brand (product or service) when compared with other, equally priced, and available brand (product or service) options.

Typically, brand preference reflects:

Customer loyalty
Successful marketing tactics
Brand strengths.

<h3>Data and Calculations:</h3>

Question Results Scale

How much did you like Product A? 3.2 1-5

How much did you like Product B? 3.9 1-5

Did you prefer Product A? 40% 100%

Did you prefer Product B? 60% 100%

How would you rate the taste of Product A? 5.1 1-7

How would you rate the design of Product A? 2.9 1-7

How would you rate the boldness of Product A? 4.2 1-7

How would you rate the smell of Product A? 6.0 1-7

Would you buy Product A if it was

available in the store? Yes = 25% Yes / No

Thus, based on the indicators above, especially the preference of products by consumers, the survey participants preferred <u>Product B (60%).</u>

Learn more about brand preferences at brainly.com/question/14286452

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2 years ago