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pochemuha
2 years ago
15

If an agent recommends that a client invest a portion of his portfolio in an international stock fund and is asked whether she s

hould compare the performance of the fund against the S&P 500 Index, how should the agent respond?
Business
1 answer:
MariettaO [177]2 years ago
5 0

Answer:

A) No, it is preferable to compare the fund against the Morgan Stanley Capital International Europe, Australasia, Far East (EAFE) Index because it covers international securities.

Explanation:

As It is important that a specific mutual fund should be compared against the benchmark i.e. considered appropriate. The performance of the international fund should also be compared against the foreign stock index like EAFE index  

So in this way the agent should be responded to the current situation

Therefore the option a is correct

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siniylev [52]

Available options are:

a. Normative influence

b. Door-in-the-face

c. Foot-in-the-door

d. Lowballing

Answer:

Option D. Lowballing Strategy

Explanation:

Lowballing strategy is when an organization advertises its low cost product or service and doesn't advertises the hidden costs to attract customers. The customer when interacts the company the sales team most likely make sales due to their experience. Such type of marketing products is common in printers whose cost is kept low whereas the tuner price is kept high which helps them to earn profit.

8 0
3 years ago
Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus
DiKsa [7]

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

= $360 - 14% * 4,000

= $360 - 560

= -$200

Hence, the answer is Real Surplus of $200 billion

8 0
2 years ago
What two things do you consider when evaluating the time value of money? (13 points)
IgorLugansk [536]
The time value of money is the idea that an amount of money in the present is more valuable and is worth more than the amount of money in the future. Two things you'd need to consider when making this type of deal is putting yourself at risk of not getting the money and putting your trust into the person who owns you the money. You would need to consider that putting yourself in that position is your decision, no one elses. Ask yourself, "Can I trust this person?" or, "What if I don't get as much money as they promised?"

I hope this helps!
7 0
3 years ago
 Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be 
Rashid [163]

Answer:

Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be written last-B.

3 0
3 years ago
On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.5 million by paying $200,000 down and borrowing the r
ASHA 777 [7]

Answer:

a. What is the amount of the interest expense the Franklins may deduct in year 1?

this will depend on the total interest paid during the year, since we are not told how long their mortgage is, we cannot know exactly how much interest expense they will pay. Generally mortgages require monthly payments, so I prepared a simulated amortization schedule for the first year assuming that the mortgage lasts 30 years and a monthly payment of $8,648.93.

year  beg.     scheduled  principal interest ending

        balance      payment                                      balance

1 1300000    8649         1066 7583 1298934

2 1298934    8649         1072 7577 1297863

3 1297863    8649         1078 7571 1296785

4 1296785    8649         1084 7565 1295700

5 1295700    8649         1091         7558 1294609

6 1294609    8649         1097 7552 1293512

7 1293512    8649         1103         7545 1292409

8 1292409    8649         1110         7539 1291299

9 1291299    8649         1116      7533 1290183

10 1290183    8649         1123  7526 1289060

11 1289060    8649         1129  7520 1287931

12 1287931    8649         1136  7513 1286795

total interest                                     $90,582

  • The total interest that can be deducted in this case would be $90,582 during year 1.

b. Assume that in year 2, the Franklins pay off the entire loan but at the beginning of year 3, they borrow $300,000 secured by the home at a 7 percent rate. They make interest-only payments on the loan during the year. What amount of  interest expense may the Franklins deduct in year 3 on this loan (the Franklins do not use the loan proceeds to improve the home)?

  • $0, interests from home equity loans used for personal expenses are not deductible.

c. Assume the same facts as in (b), except that the Franklins borrow $80,000 secured by their home. What amount of interest expense may the Franklins deduct in year 3 on this loan (the Franklins do not use the loan proceeds to improve the home)?

  • $0, interests from home equity loans used for personal expenses are not deductible.

Explanation:

8 0
3 years ago
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