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RoseWind [281]
2 years ago
14

Some advocates of behavioral finance agree with efficient market advocates that indexing is theoptimal investment strategy for m

ost investors. But their reasons for this conclusion differ greatly.Compare and contrast the rationale for indexing according to both of these schools of thought.
Business
1 answer:
denis-greek [22]2 years ago
6 0

Answer:

Advocates of the efficient market is of the belief that information that is made available publicly is usually reflected in security prices and thus adjustments in price to new information will occur swiftly. Hence, under the EMH, there are no guarantees on the prices of the stock market and thus no investment rules that can bring superior returns. In this light, investors would rather not deviate from the market index.

On the other hand, advocates of behavioral finance is of the belief that biases in behavior is capable of causing stock market prices to be inefficient. Hence making the investors to believe that a deviation from the market portfolio would be advantageous although the level of risk may be high.

Explanation:

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Which of the following exemplifies a benefit of good​ communication?
Katyanochek1 [597]

Answer:E- Earlier warning of potential problems.

Explanation:Benefits of a good communication are numerous and are listed below:

1- It gives clarity and direction.

2-Effective communication skills provide clear and defined policies. 3-Organizational communication helps organization to be successful. 4- Effective interpersonal communication skills such as listening skills, making eye contact gives boost to your personality.

5- It informs of earlier warnings of potential problems.

5 0
3 years ago
_____ leaders are agents of change because they develop an appealing vision of the desired future state, communicate that vision
GrogVix [38]

Answer:

The correct answer here is B) Transformational leader.

Explanation:

Transformational leadership style is a type of leadership, where a leader would work with its team so that a leader can identify changes that are needed, leader would create a vision to guide change through the inspiration and executes that change in tandem with committed team members. Transformational leader also helps in enhancing the motivation, job performance and morale of its team and followers through various mechanism like being a role model to others, connecting with teams sense of identity.

8 0
3 years ago
You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payment on the house, and want
LuckyWell [14K]

Answer: $6581.58

Explanation:

Based on the information given in the question, the mortgage payment per month will be calculated thus:

= [P x I x (1+I)^N]/[(1+I)^N-1]

where,

P = Principal = $750000

I = Interest rate per month = 10%/12 = 0.10/12 = 0.008333

N = number of installments = 30 × 12 = 360

Then, the equated monthly installment will be:

= [750000 × 0.008333 × 1.008333^360] / [1.008333^360-1]

= [750000 × 0.008333 × 19.8350386989] / [19.8350386989 - 1]

= 123964/18.835

= 6581.58

Under this loan proposal, your mortgage payment will be $6581.58 per month.

4 0
2 years ago
A large stock dividend:
Sladkaya [172]

Answer:

Results in a transfer of retained earnings to common stock and additional paid-in capital.

Explanation:

A stock dividend can be defined as the dividend which is distributed to shareholders on the basis of their percentage of ownership. Stock dividend is paid in form of shares and not in form of cash.

A stock dividend can also be described as a dividend payment paid by a company to its existing stakeholders from the profit or earnings that has been derived from the company during a financial year period.

The main advantage of stock dividend is that taxes will not be paid on the stock dividends until the shares have been sold.

5 0
3 years ago
ETHICS AND CULTURE
vodomira [7]

Answer:

Students will respond:

  1. Doing well in school

Students will respond:

    2. They would respond that Universal Values Differ just as individual differ   in their opinions and values.

5 0
3 years ago
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