(c)Regarding hedge fund investment, the extra layer of fees is the sole reason why the net return to an investor in a fund of funds (FOF) would be lower than that obtained from a single hedge fund.
Small investors who seek to gain better exposure with fewer risks than investing directly in securities—or even in individual funds—typically turn to FOFs. Investor receives skilled wealth management services and knowledge when they invest in a FOF.
Hedge funds pool the money of investors and make investments to generate a profit. Compared to mutual funds, for instance, hedge funds often offer more flexible investing methods.
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The correct answer is C.
Equity funds tend to be riskier than instruments with fixed return like savings accounts and bond. Stocks and mutual funds can be classified as equity funds while saving account and bonds have fixed return.
The portfolio in option C has 60% stocks and 30% mutual funds ending up with 90% equity funds. The portfolio in C has the highest level of equity funds in comparison to other options, hence it has the highest risk.
If the daily demand is 100 units and the lead time is 10 days, the reorder point is 1000 units
The formula for reorder point is:
Reorder point = (Average daily demand * Lead time) + Safety stock
putting the values in the above formual, we get,
Reorder point = (100 * 10) + 0
Reorder point = 1000 units
Demand is the number of consumers willing and able to purchase a product at various prices over a period of time. Demand for goods refers to consumers' desire to purchase goods and their willingness and ability to pay for them.
For example, if a consumer is hungry and buys a slice of pizza, the first slice has the highest utility or utility. Each additional piece makes the consumer happier and the profit decreases. Theoretically, the first production can get a higher price from the consumer.
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