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forsale [732]
2 years ago
8

The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward

securities that have fallen in relative value whenever the portfolio is rebalanced is most accurately described as:_________
a) float-adjusted market-capitalization weighting.
b) fundamental weighting.
c) equal weighting.
Business
1 answer:
Sliva [168]2 years ago
3 0

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

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Answer:

I will need to invest 64,669.73 dollars now.

Explanation:

We will calcualte the future value of the cabin considering the inflation:

Principal \: (1+ inflation )^{time} = Amount

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time  15 years

inflation 0.04000

150000 \: (1+ 0.04)^{15} = Amount

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Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds

\frac{Maturity}{(1 + rate)^{time} } = PV  

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time   15 years

rate  0.10

\frac{270141.53}{(1 + 0.1)^{15} } = PV  

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we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.

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A person works with several organisations at a single point of time and quickly develops his career. Knowledge of such people is quite high, and companies gain from their expertise. As given in the question, Sean is provided flexibility by allowing him to work from home so that he can take care of his parents. So, this is a boundaryless career pattern.

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