Answer:
Intervene and implement anti-fraternization policies if that's possible and legal. Motivate your team and improve communication as soon as
Explanation:
Before things get out of hand actions must be taken and it should be made clear favoritism is not allowed in the organization.
It would also be helpful if the team leader and team members were put into different teams as then the other members will not feel any sort of unbiased behavior towards themselves.
Please take into consideration the feelings of the involved parties as well. It's hard for people to do their best when they are unhappy or unmotivated.
Make sure to motivate your team as much as you can. A well-motivated team is a key to success. Listen to What People Are Not Saying, give Positive Feedback. Disagree without being disagreeable.
It would be be awkward for the team to freely communicate as before so please try to be an icebreaker. Let them know they are here for a common goal and they need each other to excel at it.
Complete Question:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:
Group of answer choices
A) the safety of the principal invested.
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
C) the yield is always higher than mortgage yields.
D) the yield is always higher than bond yields.
Answer:
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Explanation:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.
Answer:
Risk and Return
1. Joe is an average investor. His financial advisor gave him options of investing in stock A, with a σ of 12%, and stock B, with a σ of 9%. Both stocks have the same expected return of 16%. Joe can pick only one stock and decides to invest in stock B.
Good Financial Decision?
Yes
No
2. Marcie works for an educational technology firm that recently launched its employee stock option plan (ESOP). Marcie allocated all her investments in the ESOP.
Good Financial Decision?
Yes
No
3. rin wants to invest in a hedge fund that has had a very strong performance track record. The hedge fund has given its investors a return of over 60% for the past five years. Although Erin is tempted to put her money in the fund, she decides to conduct due diligence on the hedge fund’s assets, because she is aware that past performance is no guarantee of future results.
Good Financial Decision?
Yes
No
Explanation:
1. Joe's decision to invest in stock B is a good financial decision. Since both investments have the same returns, the decision on which investment to take shifts to the standard deviation of the returns, which specifies the variability of the returns. Invariably, the investment with less standard deviation should win the vote. Therefore, Joe's decision is a good financial decision because investment in B has a standard deviation of 9% unlike A's 12%.
2. Putting all eggs in one market as Marcie had done by allocating all her investments in the ESOP is not a good financial decision, theoretically. It is always best to spread the risks, though higher-yielding investments (returns) bear higher risks.
3. The decision of Erin to conduct due diligence on the hedge fund's assets, despite its past performance is a good financial decision. Due diligence reveals some behind-the-scene information that are instrumental in making sound business decisions. Who are the present managers of the fund? What systems are in place in the entity to guarantee similar future performance, all things being equal? What market's sentiments and information are available for consideration? These questions, and many others can be answered through a due diligence. Surely, "past performance is no guarantee of future results."
Answer:
$3443.86
Explanation:
a=p(1+r/n)^nt
a=2450(1+.0525/12)^12*6.5
3443.86