Answer: Asset allocation
Explanation:
Research from the 1970s to the 1990s found that over 90 percent of a fund's returns over time is explained by asset allocation.
It should be noted that asset allocation is simply referred to as an investment portfolio technique which balance risk through the division of assets among major categories like stocks, bonds, cash, real estate, and derivatives.
Answer:
8 units
Explanation:
The marginal utility deals with the additional satisfaction derived from consuming additional units
In the given case, the first yield has 18 units of utility, the second yield has additional 12 units of utility and the total utility is 38 units, so the marginal utility of the third Pepsi would be
= Total utility - first utility - second utility
= 38 units - 18 units - 12 units
= 38 units - 30 units
= 8 units
Answer:
$1,140,000
Explanation:
A grantor retained annuity trust (GRAT) is used to lower taxes on financial gifts. After a certain time (it is not specified in the question) Paula's sons will receive the money left in the GRAT tax free.
To calculate Paula's taxable gift we have the total GRAT value minus the value of the annuity she retained for herself:
$2,000,000 - $860,000 = $1,140,000
Answer:
A) $5,000
Explanation:
Jermaine and Kesha can claim an American Opportunity (AO) credit for both of their daughters, Devona and Arethia.
Devona's AO credit is $2,500 (100% of the initial $2,000 qualifying expenses and 25% of the next $2,000 qualifying expenses).
Arethia's AO credit is the same as Devona's, $2,500.
The total American Opportunity credit claimed is $5,000 ($2,500 + $2,500)