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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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If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied______________.
Ivenika [448]

Answer:

d. there is a shortage and the interest rate is below the equilibrium level.

Explanation:

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is less money available for loans than the required, which characterizes a shortage. Higher interest rates decrease the demand while lower rates increase demand; if demand is higher than supply, the interest rate is lower than the equilibrium rate.

Therefore, there is a shortage and the interest rate is below the equilibrium level.

7 0
3 years ago
You are the director of marketing. Your department has been doing well, but the company as a whole has been losing revenue stead
sergey [27]

Answer:

Option 2

I. State the facts of the company’s financial situation

II. Explain

A. The reasons why the company needs to take drastic action

B. The benefits of the company’s strategy

III. Inform the employees they will receive a 15 percent pay cut

IV. Close with a forward-looking statement.

Explanation: Based on the above question,the most appropriate option will be option 2.

When presenting a situation to a public or a person it is very important to give a brief about the situation where the audience will be expected to understand, once the audience Understands the prevailing situation,it makes their response and acceptance easy and more likely.

OPTION TWO IS THE MOST APPROPRIATE IN THIS SITUATION AND WILL YIELD THE MOST POSITIVE RESULTS.

7 0
3 years ago
Giving wawy points im quiting
egoroff_w [7]

Thank you so much have a lovely day

4 0
3 years ago
Demonstrating opportunity cost is done through production
Leni [432]

Answer:

Possibility

Hope this helps :)

Explanation:

8 0
3 years ago
Harry owns a barbershop and charges $6 per haircut. by hiring one barber at $10 per hour, the shop can provide 24 haircuts per e
Art [367]
For the answer to the question above, I think the answer is



$6 per haircut *  <span>24 haircuts per day = $252
</span>less the cost of barber
<span>one barber at $10 per hour * $80
</span>less the haircuts per day
$6 per haircut *  <span>24 haircuts per day= $144</span>

hiring the second barber  <u><em>will add $28 to profits</em></u>
So yes he should hire it





7 0
4 years ago
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