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bearhunter [10]
3 years ago
14

. You are an investment manager who is currently managing assets worth $6 billion. You believe that active management of your fu

nd could generate an additional one-tenth of 1% return on the portfolio. If you want to make sure your active strategy adds value, how much can you spend on security analysis?A. $12,000,000B. $6,000,000C. $3,000,000D. $0
Business
1 answer:
anastassius [24]3 years ago
7 0

Answer:

B. $6,000,000

Explanation:

Since in the question, it is given that the fund generates additional one-tenth of 1% of portfolio return

In mathematically,  

= One-tenth × rate of return × asset value

= 0.10 × 0.01 × $6,000,000,000

= $6,000,000

Here one-tenth is 0.10 and 1% is 0.01. We simply multiply the value of the asset to the given percentage

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