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valina [46]
3 years ago
8

Davita Spencer is a manager at Half Dome Asset Management. She can generate an alpha of 2% a year up to $100 million. After that

her skills are spread too thin, so she cannot add value, and her alpha is zero. Half Dome charges a fee of 1% per year on the total amount of money under management (at the beginning of each year). Assume that there are always investors looking for positive alpha and no investor would invest in a fund with a negative alpha. In equilibrium, that is, when no investor either takes out money or wishes to invest new money, a.What alpha do investors in Davita’s fund expect to receive? b.How much money will Davita have under management? c.How much money will Half Dome generate in fee income?
Business
1 answer:
Dmitriy789 [7]3 years ago
6 0

Answer:

a.  Zero

b. $200 million

c. $2 million

Explanation:

a. The investor invest regular in portfolio with the positive alpha until the portfolio size has driven alpha to zero.

 

b. Davita return 2% of $100 million = $2 million

1% fee \times X million total under management.

Than, X = $200 million

c. $200 million \times 1% fee given = $2 million

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Answer:

Implied demand uncertainly resulting uncertainty for the supply chain given the portion of the demand, the supply chain must handle & attributes the customer desires.

Explanation:

Implied demand uncertainly resulting uncertainty for the supply chain given the portion of the demand, the supply chain must handle & attributes the customer desires.

  1. It is related to customer needs & product attributes.
  2. The level of implied demand uncertainly of jasmine rice is low, because the demand& supply of jasmine rice is predictable
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3 years ago
When Carlos Bustamante received the Alumni of the Year award at his alma mater's annual award dinner, he gave a speech thanking
Angelina_Jolie [31]

Answer: Option B

             

Explanation: In simple words, acceptance speech refers to the speech  that is made by an individual generally after receiving award or similar honor as such.

In such a speech the receiving party shows gratitude and tries to connect with their audience by showing sentiments and proud of receiving the award. These speeches are  usually very brief and to the point but sometimes an extension is made by the deceiving party, stating some past events or making motivational statements to the audience.

In the given case, Carlos revived the award and thanked the school authority. Hence from the above we can conclude that the correct option is B.

7 0
3 years ago
Elle wants to understand how much, on average, her ads cost her per click. Which metric would best help her understand this
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Therefore, metrics in digital marketing ads help companies analyze the reach and effectiveness of their ads, increasing control and management.

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7 0
2 years ago
Products that the consumer does not know about or knows about but does not initially want are referred to as
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8 0
3 years ago
Juanita makes $42 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $4
Kisachek [45]

Answer:

It will purchase at the local store at an economic cost of $123

Explanation:

Answer:

It will puchase the skirt across town as it has the less economic cost.

Explanation:

We are going to add up the opportunity cost (lost wages) to the cost of the skirt:

place          travel-time Price Cost to travel Economic Cost

local store       30  $ 102.00   $ 21.00   <u> $ 123.00 </u>

across town       60  $ 85.00   $ 42.00   $  127.00

neighboring city 120  $ 76.00   $ 84.00   $ 160.00

*travel-time we multiple the time it took each eway by 2

**The  cost to travle will be Juanitas wages per hour ($42) times the travel-time/ 60

That's because the wages are express in hours and the travel time in minutes so we convert into hours

Then, the economic cost is the sum of the value of the skirt and the lost wages.

<em>Juanita, as a rational consumer will chose to purchase at the lower cost.</em>

6 0
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