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miv72 [106K]
3 years ago
12

Shen and Valerie are building their portfolios. Shen purchases shares in a mutual fund and pays fees to a manager who actively m

anages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Valerie 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.
Shen builds his portfolio on the supposition that:

a) The stock market follows the efficient markets hypothesis

b) Stock prices follow a random walk

c) Stock analysts can use fundamental analysis to identify undervalued stocks
Business
1 answer:
Taya2010 [7]3 years ago
8 0

Answer:

Option a

Explanation:

The efficient-market theory relates to the financial economics concept which claims that asset values represent all the knowledge available. The direct inference is that it is difficult to reliably "outperform the market" on a threat-adjusted basis because stock rates will respond only to fresh knowledge.

Thus, she is building her portfolio by including an index fund, which are the funds that are managed by copying a particular index of some proclaimed funds such as S and P etc.                                

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On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three yea
VLD [36.1K]

Answer:

Period                           Installment    Interest Paid   Capital Paid   Balance

January 1, 2021                                                                                $2,000,000

December 31, 2021       $776,067       $160,000         $616,067    $1,383,933

December 31, 2021       $776,067         $110,715         $665,352       $718,581

December 31, 2021       $776,067         $57,486          $718,581                     0

Explanation:

<u>Step 1</u>

First clearly identify the parameters of the Loan

PV = $2,000,000

N = 3

PMT = - $776,067

P/YR = 1

i = 8%

FV = $0

<u>Step 2</u>

Since there is no missing parameter, we can then move on to construct our loan amortization schedule.

Period                           Installment    Interest Paid   Capital Paid   Balance

January 1, 2021                                                                                $2,000,000

December 31, 2021       $776,067       $160,000         $616,067    $1,383,933

December 31, 2021       $776,067         $110,715         $665,352       $718,581

December 31, 2021       $776,067         $57,486          $718,581                     0

8 0
3 years ago
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $36,400. Cash receipts are expected to
Leya [2.2K]

Answer:

Amount to be borrowed = $21,600

Explanation:

Provided details,

Opening cash balance as on 31 March = $36,400

Add: Expected Receipts = $641,000

Less: Expected purchases = ($608,500)

Less: Cash Expenses = ($27,000)

Less: Selling and administration ($33,500)

Total balance = $8,400

Balance to be maintained = $30,000

Loan to be taken or amount to be borrowed = $30,000 - $8,400 = $21,600

6 0
3 years ago
Which quote best represents a person performing a cost-benefit analysis​
sergiy2304 [10]
I need help on that too
4 0
3 years ago
Frank, a marketing manager, has often noticed that his team members do not communicate with each other and are rarely present fo
Kipish [7]

Answer:

Cohesiveness

Explanation:

The measure of the level of unity in a group or team is called cohesiveness. It is a measure of how communicative the members of a team are. It describes the linking bond among them that makes them act as a team.

Cohesiveness is important because it also affect the extent to which members of a team are committed to working with centrally defined strategies and decisions. A cohesive team is a team that with increased morale and it also helps to boost productivity.

The feeling of being part of something big helps highly cohesive teams to achieve great job performance.

The lack of cohesiveness in Frank's team is evident in the low level of communication as well as the low level of productivity.

6 0
3 years ago
What is the meant byTQM
ch4aika [34]
TQM is Total Quality Management, it's describe as a management approach to long-terms success for customer service or satisfaction.    
5 0
3 years ago
Read 2 more answers
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