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Galina-37 [17]
3 years ago
11

A new investment adviser that will use a passive management approach opens its first account with a customer that is placing $10

,000,000 under management. The customer states that he wants the portfolio invested aggressively in selected speculative stocks. The investment adviser should:
Business
1 answer:
PtichkaEL [24]3 years ago
4 0

Answer:

B.

Explanation:

Based on the information provided it can be said that the investment adviser should recognize that the customer's request is not within the scope of the adviser's expertise and retain an outside investment counsel. A "passive" investment manager believes in results generated by a diversified portfolio over one of individually selected stocks. Since the individual wants the adviser to choose the stocks, then the adviser has the responsibility to step back due to his lack of expertise selecting an individual stock portfolio and advise the individual to retain another investment advisor.

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You short-sell 200 shares of Rock Creek Fly Fishing Co. today at $50 per share. If you want to limit your loss to $2,500, $ Blan
Tamiku [17]

Answer:

So, the maximum price per share that should place is $62.5

Explanation:

As per given data

Current Price of stock = $50

Numbers of share = 200 shares

Limit of loss = $2,500

We will use the following formula to calculate the Maximum price of stock

Total Maximum loss possible = [ ( Prefix Price of share - Current price of share ) x Numbers of shares of stock ]

$2,500 = [ ( Prefix Price of share - $50 ) x 200 ]

$2500 / 200 = Prefix Price of share - $50

$12.5  + $50 = Prefix Price of share

$62.5 = Prefix Price of share

Therefore, thee order will be stopped at $62.50

5 0
3 years ago
Which of the following is an unintended consequence of the rise of the primary and caucus system? Question 3 options:
Andre45 [30]

Answer:

a. Sometimes candidates unpopular with the party leadership reach the top.

Explanation:

Under the primary system there is voting on the ballots which is secret in nature and under the caucus system people vote after listening to the individual nominees and then accordingly to the candidate they like.

In this manner, the candidates who are not even belonging to some recognized or popular parties are in leadership as their individual speech is too alluring to the people present for voting that they vote for that specific candidate.

Thus, the correct answer is:

Statement a.

3 0
3 years ago
Over the past four years, the annual percentage returns on large-company stocks were 15, 7, 4, and 18%. For the same time period
Kisachek [45]

Answer:

c. 7.98; .92.

Explanation:

My calculations varied slightly (0.02% and 0.01%), but the error might be a rounding error. Option C is the logical answer since the difference is minimum.

real rate returns from stocks:

15% - 2.8% = 12.2%

7% - 2.8% = 4.2%

4% - 2.8% = 1.2%

18% - 2.8% = 15.2%

average real return = 8.2% arithmetic mean

average real return = 8% geometric mean

real rate returns from US T-bills:

6% - 2.8% = 3.2%

3% - 2.8% = 0.2%

2% - 2.8% = -0.8%

4% - 2.8% = 1.2%

average real return = 0.95% arithmetic mean

average real return = 0.93% geometric mean

4 0
3 years ago
How do banks create money? banks create money by ______. a. printing more $20 bills b. making loans c. sending out credit cards
Anestetic [448]

Banks create cash by using lending extra reserves to buyers and businesses. This, in turn, finally provides greater to money in circulation as dollars are deposited and loaned again.

The Fed does not really print money. This is treated through the Treasury Department's Bureau of Engraving and Printing.

<h3>How is money created in the economy?</h3>

Most of the money in our economy is created by using banks, in the form of financial institution deposits – the numbers that show up in your account. Banks create new money each time they make loans. 97% of the money in the financial system today exists as financial institution deposits, at the same time as simply 3% is physical cash.

<h3>How do commercial banks create money?</h3>

Commercial banks make cash through imparting and earning activity from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.

Learn more about creating money here:

<h3>brainly.com/question/3625390</h3><h3 /><h3>#SPJ4</h3>
3 0
1 year ago
Identify two possible reasons for unemployment​
Vladimir79 [104]

Answer:

Frictional unemployment. This is unemployment caused by the time people take to move between jobs, e.g. graduates or people changing jobs. ...

Structural unemployment

Explanation:

3 0
3 years ago
Read 2 more answers
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