You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wished to construct an index to track your portfolio performance your best match for your portfolio would be to construct a/an ______. A. value weighted index B. equal weighted index C. price weighted index D. bond price index
Solution 1
Answer:
Price weighted index
Explanation:
A price weighted index is an index used in stocks where each company that is part of the index makes up a fraction of the total, and is proportional to its price per share.
Higher weight is given to sticks that have higher prices.
Rice weighted index is a good way to track track portfolio performance that best match for your portfolio.
📚 Related Questions
Answer:
increase the price of our products or services.
Explanation:
When the price elasticity is less than 1 (inelastic), then an increase in the price of our products or services will result in a proportionally smaller decrease in the quantity demanded. Therefore, by increasing our prices, we can increase total revenue even if the quantity demanded decreases a little.
Answer:
A) kept investors happy but caused overcapitalization and debt for the railroads.
Explanation:
When a firm issued watered stock, it means that they are issuing the stock with an artificially high par value. Watered stocks were a type of fraud related to the sales of stocks with an absurd par value. You have to remember that back then, railroad companies were huge and extremely powerful, monopolies were common and information was scarce and generally manipulated. By issuing stocks with a very high par value investors were tricked into believing that the company was actually worth much more that its real value. Very few people dared to oppose the industry giants and most tried to earn money by using the same dirty tricks.
Answer: The correct answer is d) NOMINAL
Explanation: Nominal interest rate is the interest rate before inflation is taken into account. Nominal interest rate can also be used to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.
It is the contractual interest rate charged by a lender or promised by the borrower.
Answer:
short: 11,000 --> Â 1,320 income tax
long: Â 11,000 --> zero tax income
Explanation:
The capital gains are clasiffied as long.term gain once they were held for period of time of more than a year during the current holder.
Thus, the 13 month ago investment will be considered long term
while the other short term
the rate for short term is 12% at Samuel income bracket
while the long.term capital gain will not be taxed,
short term:
11,000 x 12% = 1.320‬
Answer:
a. sellers are to a change in price  Â
Explanation:
The price elasticity of supply measures the percentage change in quantity supplied with the percentage change in price
In mathematically,
Price elasticity of supply = (Percentage change in quantity supplied ÷  percentage change in price)
It shows a direct relationship between the quantity supplied and the price.
Answer:
E) Annuity B has a smaller present value than annuity A.
Explanation:
The main premise in finances is that the value of money increases in time, e.g. one dollar today is worth more than one dollar tomorrow.
In this case, annuity A is an annuity due (payment is made at the beginning of each period). An annuity due that has the same payments and the same rates, will always have a higher present value than an ordinary annuity.
Answer:
$1.10 per square foot per month
Explanation:
the marginal cost of renting an apartment with 500 additional square feet = $1,850 - $1,300 = $550 or $1.10 per square foot per month.
The marginal cost of anything is the cost of purchasing (or leasing or producing) one extra unit of output or product. Â This is why the answer must be expressed in the cost of an extra unit, not 500 extra units.
Answer:
The nominal interest rate which the bank will offer is of 10.24%
Explanation:
according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:
1.06*1.04-1 = 0.1024 = 10.24%
It can be noted that shareholders agree on same goals because:
- A. All of the decisions by the financial manager are made within the context of the overriding goal of financial management to maximize the wealth of the owners, the stockholders.
- D. The stockholders have invested in the corporation, putting their money at risk to become the owners of the corporation.
It should be noted that shareholders agree on the same goal for the finance manager.
In this case, the main goal is to maximize shareholders wealth. Shareholders put their money at risk to become owner of the corporation .
Therefore, all decisions by the financial manager are made within the context of the overriding goal of financial management to maximize the wealth of the owners, the stockholders.
Learn more about shareholders on:
Answer:
A. All of the decisions by the financial manager are made within the context of the overriding goal of financial management to maximize the wealth of the​ owners, the stockholders
D. The stockholders have invested in the​ corporation, putting their money at risk to become the owners of the corporation.
Explanation:
Shareholders agree on the same goal for the finance manager . The goal is to maximize shareholders wealth by adding values of the organisation in the form of market capitalization of the company or organisation. They put their money at risk to become owner of the corporation . They employ managers to manage the affairs of the business so that value of the organisation is maximized.
Answer:
$2,830,000
Explanation:
Net working capital is calculating by subtracting current liabilities from current assets
- current assets = cash and marketable securities + accounts receivable + inventories = $560,000 + $2,000,000 + $2,500,000 = $5,060,000
- current liabilities = accrued wages and taxes + accounts payable + notes payable = $610,000 + $910,000 + $710,000 = $2,230,000
net working capital = $5,060,000 - $2,230,000 = $2,830,000