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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 When analyzing mutual funds under this approach, outdated or merged funds are not included, taking into consideration only the valid funds as the current performance for the whole chunk.

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Consider an auctioneer who is selling an item through an auction. It is known that the 25 risk-neutral bidders have affiliated v
ratelena [41]

Answer:

2. second-price, sealed-bid auction.

Explanation:

In the given situation, it is mentioned that there is 25 risk -neutral bidders that contains the affiliated values and the same is to be allocated between $0 and $500 million

So, here the type of an action that could maximize the expected revenue is the second price i.e. sealed bid auction as in this the bidder provides the maximum price that received the good in the second maximum price

Therefore, the second option is correct

3 0
3 years ago
At the annual stockholders meeting, investors heard a presentation on the numerous challenges facing the company, including amon
shtirl [24]

Answer:

<em>(D) among them the threat of a rival’s multibillion-dollar patent-infringement suit and the decline in sales of</em>

Explanation:

Simplified Meaning is: Several issues were heard by investors at the annual SHM.

Two problems were among those: a threat from the MDPI of a competitor and a decline in the sales of the strong microprocessor chip of the company.

Verbing modifier should amend the preceding clause and make much sense in relation to the preceding clause.

Modifies the problems here with the other options and does not suit well with the subjective "investors".

8 0
3 years ago
Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in
galina1969 [7]

Answer:

c. $6,076

Explanation:

Calculation for what Alison should record the purchase

Purchase=$6,200 ×(100%-2%)

Purchase=$6,200 ×98%

Purchase=$6,076

Therefore if Alison uses the net method to record purchases she should record the purchase at:$6,076

7 0
3 years ago
The Silverside Company is considering investing in two alternative​ projects: Project 1 Project 2 Investment ​$400,000 ​$280,000
shepuryov [24]

Answer:

The Silverside Company

Project 1's Payback Period

= Initial Investment/Annual cash flows

= $400,000 / $90,000

= 4.44 years.

Explanation:

Project 1:

Initial Investment = $400,000

Useful life = 5 years

Annual cash inflows for useful life = $90,000

The Silverside Company's payback period calculates the time or number of years that it would take the company to recover from its initial investment in Project 1.  This is the simple payback period calculation.  There is also the discounted payback period calculation.  This method discounts the annual cash inflows to their present values before the calculation is carried out.  This second method gives a present value perspective on the issue.

4 0
3 years ago
What is the product?
Gekata [30.6K]
The answer to a multiplication problem
6 0
3 years ago
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