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miv72 [106K]
2 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]2 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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6 0
3 years ago
Which is not true of a perfectly competitive market? a. At the long-run equilibrium, economic profit is less than accounting pro
shtirl [24]

Answer:

B is the correct option.

Explanation:

In theory, the perfect market is the structure in which all the firms sell identical products,They all are price takers, the market share doesn't influence the prices, firms can enter or exit the market without cost and resources are perfectly mobile. No markets are in the sphere of the perfect competition model. so they are classified as imperfect. The imperfect and perfect market is the outcome of post-classical economic thought of the Cambridge tradition.

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2 years ago
How will an increase in the percentage of older Americans affect the healthcare field? 1.There will be far fewer qualified worke
Troyanec [42]
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I hope it helped you!
7 0
3 years ago
Read 2 more answers
earned net sales revenue of $62,000,000 in 2016. Cost of goods sold was $41,540,000​, and net income reached $9,000,000​, the​ c
Gekata [30.6K]

Answer:

33%

Explanation:

The gross profit percentage is also known as the gross margin which is the ratio of the gross profit to sales. it shows the amount of gross profit earned per $1 of revenue made.

The gross profit is the difference between the sales and the cost of goods sold.

Gross profit for 2016

= $62,000,000 - $41,540,000

= $20,460,000

Gross profit percentage

= $20,460,000 /$62,000,000

= 0.33

= 33%

3 0
3 years ago
Productivity in the United States doubled between 1945 and 1990. However, the work week didn't get shorter because
mel-nik [20]

Answer:

the standard of living increased

Explanation:

Between the years 1948 and 1990, the level of productivity in the United States of America increased tremendously, to the extent that it was in the doubled fold. Consequently, this increase in the level of productivity simply exemplified that, there is a substantial increase in the standard of living for the average American.

Hence, it can be concluded that, in this case, the workweek didn't get shorter because "the standard of living increased."

3 0
2 years ago
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