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Vlada [557]
3 years ago
15

Conventional wisdom says one should measure a manager's investment performance over an entire market cycle. What arguments suppo

rt this contention? What arguments contradict it?
Business
1 answer:
White raven [17]3 years ago
4 0

Answer:

In every form of analysis, it is always safer to take a macro or holistic view of the situation. This is true for the investment performance of a manager. One investment decision that went right does not suffice to classify an investment portfolio manager as proficient, neither is one that went south enough to tag him deficient.

The forecasting ability of managers, on the balance of probability, will vary for different cases, with a helicopter view of providing a more accurate measure of their performance.

However, if it was possible to analyse the market for volatility and adjust our forecasts it becomes unnecessary to look at and analyse all the information from a 12-month cycle before coming to terms about the performance of the manager.

Cheers!

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Shelley’s Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last y
Murrr4er [49]

Answer: Option B

Explanation:

A. Explicit cost are the cost paid to others in return of their service. Hence Option A is incorrect.

B. Revenue is the total amount of earnings a company have before deducting for expenses. Hence Option B is correct.

C. Accounting profit means (Revenue - explicit cost) . Hence Option C is incorrect.

D. Economic profit means (Revenue - explicit cost - implicit cost) . Hence Option  D is incorrect.

6 0
3 years ago
At December 31, 2018, the financial statements of Hollingsworth Industries included the following: Net income for 2018 $ 590 mil
m_a_m_a [10]

Answer:

Basic EPS = $1.359 million

Diluted EPS = $1.195 million

Explanation:

For Basic EPS we need to calculate the number of shares outstanding

Shares as on Jan 1 = 450 million

Treasury shares on Sep 1 =  48 million × (4 months ÷ 12 months)

                                           = 16 million

Number of shares o/s =  Shares as on Jan 1 - Treasury shares on Sep 1

                                    = 450 million - 16 million

                                    = 434 million

Basic EPS = Net Income ÷ Number of shares o/s

                 = $590 million ÷ 434 million

                 = $1.359 million

For Diluted EPS,

Interest savings = 10% × $ 250 million

                           = $25 million

Adjusted Net Income =  Net Income + After tax interest savings

                               = $590 million +  [25 millions - 40(25million)]

                               = $590 million - $15 million

                               = $575 million

and weighted number of shares will include the bonds, that are convertible

Outstanding shares as computed = 434 million

Bond conversion Shares = 47 million

Total shares outstanding =  Outstanding shares as computed + Bond conversion Shares

                                          = 434 million  + 47 million

                                          = 481 million

Diluted EPS = Adjusted Net income ÷ Total shares outstanding

                    = $575 million ÷ 481 million

                    = $1.195 million

8 0
3 years ago
financial calculator Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a resu
Ann [662]

Answer:

NPV = 138,347.55

Explanation:

<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>

We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:

<em>Prevent Value of  operating cash flow</em>

PV =A× (1- (1+r)^(-n))/r

A- 23,900, r - 12%, n- 5

PV = $23,900 × (1- (1.12)^(-5))/0.05

=206,769.963

<em>PV of Working Capital recouped</em>

PV = 5600× 1.12^(-5)

    = 3,177.59

NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow

NPV = (66,000) + (5600) + 3,177.59 + 206,769.96

NPV = 138,347.55

5 0
3 years ago
Who wanna buy essay?
VLD [36.1K]
Me I want to buy essay
3 0
3 years ago
Read 2 more answers
Claremont Company specializes in selling refurbished copiers. During the month, the company sold 180 copiers at an average price
Bess [88]

Answer:

B

Explanation:

Since the average copier was sold $3000

Budgeted 175 copier was sold $3200

Therefore $3000+$3200= $6200

6200*180=$1116000

We subtract it from the 180*$3000=$54000

$1116000-$540000

=$576000

4 0
3 years ago
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