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olga55 [171]
3 years ago
14

Assume that markets are not efficient and that you will earn the average return of an active investor if you pick stocks. How sh

ould you choose between active and passive investments and why
Business
1 answer:
Lena [83]3 years ago
4 0

Answer with Explanation:

If the markets are not efficient then there higher probability that the investor can earn from the price fluctuations because the markets are not valuation is different. The investor would be spending money on gaining the benefit of price fluctuations which will be for short term only and he will be acting in time to continuously earn money from the fluctuation.

The investors and financial institutions will master the quantitative analysis and qualitative analysis of the price changes to guess where will be the change going to happen and we must take advantage of it.

The passive investment is the investment which the management intents to hold for a longer period to benefit from it. If the markets are not efficient then it is useless to hold an passive investment. Rather holding a passive investment it would be better to hold an active investment which benefit more as we will be beating the market by price differences. The possession of passive investment is less expensive as apposed to active investments because less fee is charged by the broker. Active investment would be risky investment because we will continuously gaining and loosing money.

The financial advisers opt to creating a portfolio of active and passive investments to lower the unsystematic risk and increase the gain limit to average return.

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What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?
Galina-37 [17]

Answer:

Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:

a) Fitness training

b) Physical exercise

c) Relaxation and comfort

d) Clean and safe environment and conducive atmosphere

e) the friendly and courteous staff is a bonus

Explanation:

Planet Fitness operates fitness centers and clubs around the world under franchises.  Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories.  The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.

4 0
3 years ago
Through coordinating partnerships with dedicated suppliers, Warby Parker have ensured quality, built a lean manufacturing operat
Sedbober [7]

Answer:

B. Profit / Economic

Explanation:

The triple bottom line addresses three factors that a socially responsible company must adhere to. The People / Social factor discusses the importance of the social needs of the customers which the customer must fulfill. The Planet / Environment factors are the factors that discusses about the responsiblity of the company to manufacture environmental friendly products that do not harm the environment and is sustainable. The Profit / Economic factor is one of the three factor which company must try to earn profit to keep the business running and thus benefits by earning profit to a lot of stakeholders.

The quality product is a reason why the customer prefer the company's product which helps the company in making profit. So the profit / economic factor is the right option.

6 0
3 years ago
If your broker has been right in her five previous buy and sell​ recommendations, you should continue to listen to her advice. I
elena55 [62]

Answer:

<u>(d)True, brokers often have inside information that is generally not available to the public. You should listen to her and profit from her inside knowledge</u>

Explanation:

  • A broker is a person who has knowledge and expertise in his field of tradings and takes his commission for the services provided as these brokers also tend to have inside information and the success of the broker for the past five years proves this fact.
  • Most of them typically have a formal license and proper training. Most of them are flexible and do dealing with face to face.
7 0
4 years ago
Suppose that in addition to the $66,799 annual rental payments, Kimberly-Clark is also required to pay $5,000 for insurance cost
kipiarov [429]

Answer:

The question is incomplete, since we are missing the rest of the information. I looked for a similar question and found that the lease agreement lasts 10 years.

The annual insurance payment will increase the right of use asset and lease liability by:

PV annuity due = payment + {payment x [1 - (1 + r)⁻⁽ⁿ⁻¹⁾]/r}

PV = $5,000 + {$5,000 x [1 - (1 + 0.08)⁻⁹]/0.08} = $36,234

3 0
3 years ago
Consider the market demand for peanut butter.Complete the following table by indicating whether an event will cause a movement a
EleoNora [17]

Answer:

A change in the expectations of consumers about prices - a shift of the demand curve for peanut butter

A decrease in the price of peanut butter - a movement along the demand curve for peanut butter

A decrease in the number of consumers - a shift of the demand curve for peanut butter

Explanation:

Only a change in price of a product would lead to a movement along the demand curve for that product.

A decrease in the price of peanut butter would increase the quantity demanded for butter. This would lead to a movement down the demand curve.

A change in the expectations of consumers about prices can shift demand curve either to the left or right.

A decrease in the number of consumers would shift the demand curve to the left.

I hope my answer helps you

8 0
4 years ago
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