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igor_vitrenko [27]
3 years ago
11

A key reason that actively managed funds have lower returns than index funds with a similar level of risk is that:

Business
1 answer:
bixtya [17]3 years ago
5 0

Arbitrage reducing the returns of actively managed funds is a key reason that actively managed funds have lower returns than index funds with a similar level of risk

To add, <span>actively managed funds typically have higher fees than passively managed funds.</span>

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An investor owns $3,000 of Adobe Systems stock, $6,000 of Dow Chemical, and $7,000 of Office Depot. What are the portfolio weigh
Drupady [299]

Answer:

0.1875; 0.375; 0.4375

Explanation:

Given that,

Adobe Systems stock = $3,000

Dow Chemical = $6,000

Office Depot = $7,000

Total Value of stock:

= Adobe Systems stock + Dow Chemical + Office Depot

= $3,000 + $6,000 + $7,000

= $16,000

Portfolio weights of Adobe Systems stock:

= Value of Adobe Systems stock ÷ Total Value of stock

= $3,000 ÷ $16,000

= 0.1875

Portfolio weights of Dow Chemical stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $6,000 ÷ $16,000

= 0.375

Portfolio weights of Office Depot stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $7,000 ÷ $16,000

= 0.4375

3 0
3 years ago
Three highly similar and competitive income-producing properties within two blocks of the subject property have sold this month.
EastWind [94]

The overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject is 11.4%

Explanation:

Capitalization is the accounting of expenditures and the regular distribution of investments in fixed reserves over future years. Capitalisation, in other words, includes an expense usually documented in a temporary account and reported as an income account on a permanent basis.

Take the average of the three property capitalization rates to find the overall capitalization rate.

4 0
3 years ago
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
Lisa [10]

Answer:

2190 ; 2560 ;

$778.2

Explanation:

Total worth of gasoline sold = 16003.50

Cost of regular = 3.30

Cost of premium = 3.45

Let :

premium Gallon sold = x

Regular gallon sold = 370 + x

Hence, mathematically;

(3.45*x) + (3.30 * (x + 370)) = 16003.50

3.45x + 3.30x + 1221 = 16003.50

6.75x = 16003.50 - 1221

6.75x = 14782.5

x = 14782.5 / 6.75

x = 2190

Premium Gallon sold = 2190 gallons

Regular gallon sold = 2190 + 370 = 2560 gallons

Profit per regular gallon sold = $0.15

Progit per premium Gallon sold = $0.18

Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2

7 0
3 years ago
In the actual economy, goods and services are purchased byA. households, but not firms or the government. B. households and the
GenaCL600 [577]

Answer:

C. households, firms, and the government.

Explanation:

In the actual economy, goods and services are purchased by households, firms, and the government.

7 0
3 years ago
A south sea island produces only coconuts. In​ 2015, the price of a coconut is ​$1.00 and the quantity produced is 250 . In 2019
maria [59]

Answer:

the real GDP in 2019 is $200

Explanation:

The computation of the real GDP is shown below;

= Base year price × quantity produced in 2019

= $1 × 200

= $200

Hence, the real GDP in 2019 is $200

The above should be used to determine the real GDP in 2019 and the same should be relevant

8 0
3 years ago
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