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3 years ago

Investment advisers are prohibited from doing all of the following EXCEPT:

Business

1 answer:

Aneli [31]3 years ago

5 0

Answer:

B. charging a retainer fee

Explanation:

Investment advisers are prohibited from doing all of the following except for charging a retainer fee. A retainer fee is an specific amount of money that the client pays to the professional upfront so that his/her services are secured and always available when needed. Investment Advisers can charge this fee so that the client's can always get their service as soon as it is needed.

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e-lub [12.9K]

What is the question??

4 0

2 years ago

If investors speculate in derivative contracts rather than the underlying asset, they will probably achieve ________ returns, an

Ede4ka [16]

Answer:

Explanation: do your best and i hope you do good

8 0

3 years ago

Flip Flop, Inc. treated interest on uncertain tax liabilities as interest expense and penalties as part of selling, general and

borishaifa [10]

Answer:

Flip Flop Inc can still treat Interests as Interest expense and treat penalties as Fees, dues, and subscriptions.

Explanation:

Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings – bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt

Penalties can be categorized under deductible expenses called Fees, dues, and subscriptions.

Levies and other fees paid to an accountant or bank; memberships fees to professional organizations, subscriptions to industry publications and funds paid as penalties are all deductible.

3 0

3 years ago

Last year, Rocket Inc. earned a % return. Farmer's Corp. earned %. The overall market return last year was %, and the risk-free

grigory [225]

Answer:

a) Expected Return for Rocket Inc. = 27.7 %

b) Expected Return for Farmer's Corp. = 9.5 %

c) The Stock performed better once you take risk into account = Rocket Inc.

Explanation:

Given - Last year, Rocket Inc. earned a 19 % return. Farmer's Corp. earned 12 %. The overall market return last year was 16 %, and the risk-free rate was 3 %. If Rocket stock has a beta of 1.9 and Farmer's has a beta of 0.5.

To find - (a) Rocket's expected return is ... ?

(b) Farmer's expected return is ... ?

Solution -

The formula for Expected return is -

Expected Return = Risk-free rate + Systematic Risk ( Market Return - Risk-free rate )

Now,

For Rocket Inc. -

Expected Return = 3% + 1.9 ( 16% - 3% )

= 3% + 1.9 (13 %)

= 3% + 24.7 %

= 27.7 %

⇒Expected Return for Rocket Inc. = 27.7 %

For Farmer's Corp. -

Expected Return = 3% + 0.5 ( 16% - 3% )

= 3% + 0.5 (13 %)

= 3% + 6.5 %

= 9.5 %

⇒Expected Return for Farmer's Corp. = 9.5 %

Now,

Given that,

Actual Return of Rocket Inc. = 19 %

Expected Return of Rocket Inc. = 27.7 %

⇒ Performance is better

Now,

Actual Return of Farmer's Corp. = 12 %

Expected Return of Farmer's Corp. = 9.5 %

⇒ Performance is worst

∴ we get

The Stock performed better once you take risk into account = Rocket Inc.

7 0

3 years ago

How many qualifications should you highlight in the argument section of your cover letter?.

givi [52]

You should maybe identify 1 or 2 of what you’d say your strongest qualifications are :)

8 0

1 year ago