1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kisachek [45]
3 years ago
13

Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 0.4% of

the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 1 decimal place.)
Business
1 answer:
AleksAgata [21]3 years ago
3 0

Answer: 0.4%

Explanation:

Given that,

At every time a fund manager trades stock, then

Transaction costs = 0.4% of the value of the trade

Portfolio turnover rate = 50% ; On an average, 50% of the portfolio stock is sold and exchange with the other securities every year.

Trading costs on selling orders = 0.4%

Trading costs on buying orders = 0.4%

Therefore,

Total return of the portfolio reduced by trading costs:

= 2\times0.50\times0.004

      = 0.4%

You might be interested in
Project managers should try to _____ the size of teams or subteams to avoid making communications too complex.
natta225 [31]

Project managers should try to limit and decrease the size of teams or subteams to avoid making communications too complex.

<h3>How do project managers manage communication in the workplace?</h3>

Successful project managers communicate through a variety of channels using both formal and informal means. This increases the likelihood that messages will be received. To lessen the likelihood of a communication breakdown, use straightforward language, stay on topic, keep messages brief, and provide all the information in one location.

6 effective methods for project team communication

1. Gather frequently. Hold regular team meetings to discuss strategies. ...

2. Be welcoming. ...

3. Be frank, precise, and succinct. ...

4. Display some decency. ...

5. Realize that you might not always be right. ...

6. Utilize online teamwork tools.

To know more about communication management, visit:

brainly.com/question/1165906?

#SPJ4

3 0
1 year ago
Explain The Goal For Health/Fitness
vazorg [7]

Long-term: this is when you have a family and kids probably. You should still go on walks, hikes or runs. Stay in shape.

Mid-term: your about 25 ish during this time. You should still be very active while still in college or have a career already.

Short-term: you should still have a passion for a sport or hoppy. Stick to it. You may get a scholarship for that sport if your good

3 0
3 years ago
5 of 100
Ber [7]

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

<h3>What do you mean by investment?</h3>

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\   \rm\,The\,Net \,Income =  (95\% \times 3,600 \times 12) - 8,640\\\\   \rm\,The\,Net \,Income =  \$32400

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

                           \rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

Learn more about investment:

brainly.com/question/24703884

#SPJ1

4 0
2 years ago
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead
o-na [289]

Answer:

Please find the complete question in the attached file.

Explanation:

Rocky believed there would be a 30\% possibility of a July bonus for touring, i.e < 50\%, from July 1-July 15 (10 days)-. Therefore no bonus can be calculated as \$2,400 / day trip \times 10 days =\$2,400 throughout this duration.

The expected 15-day revenues from 16th July – 31st July may well be calculated as \$2,400 \times 15 \ days = \$36.000. Rocky calculated that it would get the bonus 80\% of the time. Estimates a \$240/day\ bonus \times (10\ days + 15\ days) = \$6,000

3 0
3 years ago
The organizations likely to benefit the most from the global reach of e-commerce are those that:.
timofeeve [1]

The organizations likely to help the most from the global reach of e-commerce exist those that: formerly depended on foot traffic into one physical store to sell their products.

<h3>What is e-commerce?</h3>

E-commerce (electronic commerce) stands for the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, especially the internet. These business transactions happen either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer, or consumer-to-business. E-commerce exists in the action of electronically buying or selling products on online services or over the Internet. Ecommerce can be described as the buying and selling of goods electronically online. It is prevalent because of the many advantages of e-business -internet commerce, electronic funds transfer, mobile commerce – this exists broken up into two parts.

Global Reach guides a business initiative to improve the access between a company and their current and potential customers via the usage of the Internet. The organizations likely to help the most from the global reach of e-commerce exist those that: formerly depended on foot traffic into one physical store to sell their products.

To learn more about e-commerce refer to:

brainly.com/question/23369154

#SPJ4

4 0
1 year ago
Other questions:
  • The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution wareho
    5·1 answer
  • Problem 2 A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order, Annual carryi
    11·1 answer
  • Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that
    10·1 answer
  • 1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an a
    7·1 answer
  • Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of prod
    5·1 answer
  • Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probabil
    10·1 answer
  • Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $
    15·2 answers
  • Describe about comparative cost and absolute advantages of international trade​
    14·1 answer
  • A company has designed a new product and tested the prototype. what is the next step in product development?
    8·1 answer
  • Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflow
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!