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Ivahew [28]
3 years ago
14

10. Asset valuation Andrew and Beth are building their portfolios. Andrew purchases shares in a mutual fund and pays fees to a m

anager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Beth is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio. Andrew builds his portfolio on the supposition that: Stock prices follow a random walk. The stock market exhibits informational efficiency. Stock analysts can use fundamental analysis to identify undervalued stocks.
Business
1 answer:
N76 [4]3 years ago
4 0

Answer:

Stock analysts can use fundamental analysis to identify undervalued stocks

Rationale- in stock market , stock analysts know the pros and cons of investing shares in stock market. They have experience to take decision regarding to shares building. With their experience they can easily identify the undervalued stocks and invest shares in valued stocks. Manuel builds his portfolio on the stock analyst.

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The scientific method begins with
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C, The identification of a problem for investigation

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Explain one method economics and business people use to help them make business decisions?
djverab [1.8K]

Answer:

A cost-benefit analysis involves subtracting the sum of all the business costs from the business benefits.

Explanation:

Business is the act of exchanging goods and services for commercial purposes. The main aim of conducting a business for most people is to increase sales and make profit. In order to do this, there are business decisions that go into the running of business that determine how the business will perform. Most of these decisions if taken into account can lead to overall business success. There are different methods in economics that can aid a business person to make a decision, however, in this case we will consider the cost-benefit analysis as a tool of economics that can be used to make business decisions.

As indicated above, a cost-benefit analysis is a method that businesses often use to arrive at decisions. The analysis is done by first assigning monetary units to all the activities and processes that will go into the business. The total costs are then calculated from all the expenditures that will be incurred in the business. The benefits are then calculated from all the revenue expected to be got from the business. The costs are then subtracted from the benefits. The result can be either zero, negative or positive. A zero result implies that the business will break-even, there will be no losses or profits. A negative value implies that the business will go to a loss thus not advisable to venture in it. A positive result shows that the business will be profitable therefor it would be beneficial to venture into it.

3 0
3 years ago
If you have a credit card with 15.99% APR that compounds monthly, what is the effective interest
RideAnS [48]

Answer: 17.22%

Explanation:

Effective interest rate is calculated by the formula:

=  (1 + APR / Number of compounding periods) ^ Number of compounding periods - 1

Number of compounding periods = 12 months in the year

= (1 + 0.1599/12)¹² - 1

= 0.172155

= 17.22%

7 0
3 years ago
A company's product sells at $12.26 per unit and has a $5.39 per unit variable cost. The company's total fixed costs are $96,700
Delvig [45]

Answer:

$6.87

Explanation:

Calculation for what The contribution margin per unit is:

Selling price per unit $12.26

LessVariable cost per unit ($5.39)

Contribution margin per unit $ 6.87

($12.26-$5.39)

Therefore The contribution margin per unit is: $6.87

7 0
3 years ago
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