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3 years ago

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

1 answer:

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, actively managed funds typically have higher fees than passively managed funds.

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Permian Underground Machines & Pipes Co. (PUMP) is in the oil and gas equipment and services industry. It is considering a n

AVprozaik [17]

Answer:

Option A is correct.

The required rate of return for the bond that PUMP managers are considering is 1.46%

Explanation:

Required rate of return for the bond that PUMP managers are considering is 1.46%. Because, currently, the yield on a U.S. Treasury bond with about 10 years to maturity is 1.46%. same type of bond yielding is 1.46%.

3 0

3 years ago

Kevin analyzes the quarterly earnings statements of some fifty obscure small-cap stocks. He then buys according to the earnings

mamaluj [8]

Answer:

Semi-strong form efficiency.

Explanation:

Semi-strong form efficiency contends that security prices have factored in publicly-available market and that price changes to new equilibrium levels are reflections of that information. It is considered the most practical of all Efficient Market Hypothesis(EMH) hypotheses but is unable to explain the context for material nonpublic information (MNPI). It concludes that neither fundamental nor technical analysis can be used to achieve superior gains and suggests that only MNPI would benefit investors seeking to earn above average returns on investments.

6 0

2 years ago

Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years,

Elena L [17]

Answer:

Present Value of Annuity is $1,263,487

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $91,000

r = rate of return = 5.15%

n = number of years = 25 years

PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]

PV of Annuity = $1,263,487

4 0

3 years ago

Dry cleaning companies often charge more for women's blouses than men's shirts. They claim that this is because women's blouses

ANEK [815]

Answer:

This practice of charging women more than men for the same service is known as pink tax.

Explanation:

Many manufacturers are charging more for products simply because they're branded for women. This practice is know as pink tax . It is consider a gender discrimination

4 0

2 years ago

The goal of study skills and strategy instruction is to

Norma-Jean [14]

STUDY EVERYDAY AND MAKE SURE IF YOU NEED HELP ASK

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3 years ago