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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%

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The following information relates to a company's defined benefit pension plan at December 31:Accumulated benefit obligation1,035
lawyer [7]

Answer:

B.$513,000

Explanation:

The pension liability of a company as at December 31, is to be calculated in the following manner:

Pension liability=Projected benefit obligation-Plan Assets(fair value)

                           =1,250,000-737,000

                           =$513,000

So based on the above discussion, the answer is B.$513,000

7 0
3 years ago
The management team has asked you to reschedule the project so it finishes two weeks earlier without spending more money. They h
Tanya [424]

Answer:

Crash the schedule.

Explanation:

Fast-track can complete the task earlier but takes more money. Assign more experienced people will cost the management more money. Cut scope reduces the project requirement and finishes the task earlier. Therefore, options A B and D can not be the answer.

Crash the schedule (option C) is the answer because it allocates enough resources to complete the task earlier without spending more money.

5 0
3 years ago
A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the
Crank

Answer:

Economic loss=$(28,000)

Explanation

Accounting profit is the difference between total revenue and explicit cost.

Explicit cost refers to all cash and non cash cost incurred to produce the goods and services

Economic profit = sales revenue - explicit cost - implicit cost

Implicit cost is the opportunity cost - the value of the next best alternative sacrificed to produce the product.

The opportunity cost in the case is the worth of the offer to work elsewhere which is equal to $25,000

Economic profit = (7,000× 6) - 45,000- 25,000=$ (28,000)

Economic loss=$(28,000)

8 0
3 years ago
analysis, formulation, and implementation are the pillars of research and knowledge about strategic management. this activity is
AlekseyPX

The constant planning, monitoring, analysis, and assessment of all requirements that a company requires to accomplish its goals and objectives is known as strategic management. Organizations will have to reevaluate their success methods on a regular basis as a result of changes in the business environment. The strategic management process aids businesses in taking stock of their current condition, developing and implementing management plans, and evaluating their efficacy. There are five fundamental tactics for strategic management, and how they are implemented will vary based on the situation. On-site and mobile platforms both require strategic management.

The benefits of strategic management are typically seen as both financial and non-financial. A key duty of a board of directors is carried out via a strategic management process, which aids a business and its leadership in thinking about and making plans for the future. The organization's and its employees' direction is established by strategic management. Effective strategic management continuously prepares, monitors, and tests an organization's activities in contrast to static strategic plans, increasing operational effectiveness, market share, and profitability.

To lean more about strategic management from the given link.

brainly.com/question/24845876

#SPJ4

8 0
11 months ago
Riverboat Adventures pays $450,000 plus $5,000 in closing costs to buy out a competitor. The real estate consists of land apprai
kkurt [141]

Answer:

$150,150

Explanation:

Total fair value of all assets:

= Land + Building + Paddleboats

= $67,200 + $158,400 + $254,400

= $480,000

Building accounted for:

= Fair value of building ÷ Total fair value

= $158,400 ÷ $480,000

= 33%

Therefore, the building is 33% of the total fair value of assets.

Cost of acquisition of assets:

= Amount paid + Closing cost to buy out a competitor

= 450,000 + 5,000

= $455,000

Cost to be allocated to the building:

= Cost of acquisition of assets × Percent share in total fair value

= $455,000 × 33%

= $150,150

8 0
3 years ago
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