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iren2701 [21]
3 years ago
15

When testing mutual fund performance over time, one must be careful of ___________, which means that a certain percentage of poo

rer-performing funds fail over time, making the performance of remaining funds seem more consistent over time.A. survivorship biasB. lucky event biasC. magnitude biasD. mean reversion bias
Business
1 answer:
Verdich [7]3 years ago
3 0

Answer:

The correct answer is letter "A": survivorship bias.

Explanation:

Survivorship bias or survivor bias, in finance, refers to the tendency of concentrating in past winner actions of a given asset -usually stocks, and dismissing the losers. When analyzing mutual funds under this approach, outdated or merged funds are not included, taking into consideration only the valid funds as the current performance for the whole chunk.

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Sherry is trying to increase her daily exercise. She has downloaded an application on her phone that tracks how far and how long
leonid [27]

Based on this information and the components of self-regulation, Sherry is implementing <u>self-evaluation</u>.

<h3>What are self-regulation?</h3>

It is the ability to analyze the environment and the set of processes that we carry out in order to successfully manage ourselves whose components are self-observation, self-evaluation and self-reinforcement.

Self-evaluation component refers to the fact that the person determines some criteria that mark or guide the objectives that he wants to achieve, these criteria can contrast whether the change in behavior is the one he is looking for or not, according to his objectives.

Therefore, we can conclude that based on this information and the components of self-regulation, Sherry is implementing self-evaluation.

Learn more about self-evaluation here: brainly.com/question/26304121

3 0
2 years ago
Which type of portfolio might a young investor who is not afraid of risk choose? a portfolio of with a high percentage of stocks
ryzh [129]
The suitable portfolio for the young investor is a.) portfolio of with a high percentage of stocks. Stocks are a person's share in a company, giving them profits or losses based on a company's performance. Stocks are highly risky due to the unpredictable performance in the stock market, prices can rise or drop fast. However, the returns of the stocks are higher compared to other financial instruments.
5 0
3 years ago
Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
d1i1m1o1n [39]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
3 years ago
Which of the following constitutes constructive receipt in the current year ended December​ 31?a. A salary check received at​ 6:
zubka84 [21]

Answer:

a. A salary check received at​ 6:00 p.m. on December​ 31, after all the banks have closed.

b. A rent check received on December 30 by the manager of an apartment complex. The manager normally collects the rent for the owner. The owner was out of town.

Explanation:

The principle of constructive receipt is determined by when the person who receives the income had control over it. An individual or company is considered to have control over income when it is credited to that person or company. Basically, it's when you could spend that income if you wanted, even if you don't spend it.

From the principle of constructive receipt in the above paragraph, only option a (A salary check received at​ 6:00 p.m. on December​ 31, after all the banks have closed.) and b ( A rent check received on December 30 by the manager of an apartment complex. The manager normally collects the rent for the owner. The owner was out of town.) fall within the category. The other three options, the person is unable to spend the check even if they wanted to, until after December 31.

6 0
3 years ago
An accountant of wallie's the pizza franchise claims that its stores generate average weekly revenues of at least $7,000 per sto
Lesechka [4]

The calculated value of the Z statistic to test the potential buyer's belief at the 1% significant level is -2.57512627.

The calculated Z score is slightly greater than the critical value of -2.575, the potential buyer's view that weekly store revenues are less than $7,000 stands vindicated.

Since store revenues are assumed to be normally distributed and population standard deviation is given, we can use the Z-test. The relevant test statistic is the Z-score.

We use the following formula for calculating the Z score:

Z = (X - μ) / (σ /√n)

Substituting the relevant values we get,

Z = (6400 -7000) / (1042/√20)

Z = -600 / 232.9982833

Z = -2.57512627

7 0
3 years ago
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