Complete question:
A. The portion of the funding that should be allocated to tax-free investments
B. The portion of the funding that should be maintained in readily accessible funds such as money market instruments
C. The customer's preference for investing via passively managed index mutual funds or via actively managed mutual funds
D. The investment philosophy and strategies employed by the fund manager of the chosen mutual fund
Answer:
The best answer is D
" The investment philosophy and strategies employed by the fund manager of the chosen mutual fund "
Explanation:
Since this person is rich and potentially in a high taxation role, the allocation of part of the assets in tax free municipal investments should be taken into consideration.
An emergency fund should always be maintained, so consideration should be given to the amount of funding allocated to money market fund investments. It should also be considered whether the customer believes in the management of passive assets or active assets.
Passive asset managers believe in the use of low-cost index funds -with the idea that nobody can do better than the market over time. Active asset managers believe that the correct "picking" of stocks enables a manager to surpass the market. The actual trading strategies employed by an active manager to achieve his results are not relevant to the portfolio construction.
Answer:
What will be the amount of this annuity payment?
$711.888
Explanation:
N Monthly principal interest Net value
5.000.000
1 711.888 361.888 350.000 4.638.112
2 711.888 387.220 324.668 4.250.893
3 711.888 414.325 297.562 3.836.568
4 711.888 443.328 268.560 3.393.240
5 711.888 474.361 237.527 2.918.879
6 711.888 507.566 204.322 2.411.313
7 711.888 543.096 168.792 1.868.218
8 711.888 581.112 130.775 1.287.106
9 711.888 621.790 90.097 665.315
10 711.888 665.315 46.572 (0)
Answer:
The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Answer:
$100,000
Explanation:
According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''
Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.
Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation
. In the scenario we have no depreciation figures, hence the basis is the cost of $100,000
I think the correct answer is c , hope I helped
