A portfolio manager generates a 10% rate of return on a "small cap" portfolio, compared to an 8% rate of return on the benchmark portfolio and a 6% rate of return on the Standard and Poor's 500 index over the same period. The active rate of return on the portfolio is:

Answers

Answer 1
Answer:

Answer:

2%

Explanation:

Data provided in the question

Generated rate of return = 10%

The rate of return on the portfolio = 8%

The rate of return on the index = 6%

Based on the above information, the active rate of return is

= Generate rate of return - the rate of return on the portfolio

= 10% - 8%

= 2%

It shows the difference between the benchmarked portfolio and the generated rate of return and the same is applied


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Advantages of borrowed capital

Answers

Oneof the advantages of borrowed capital is that interest rate is low because thedebts are secured by the assets of the business. With sufficient capital, the potentialrate of the profit will be high. The profit rate is higher than the interestrate from debt. Another advantage is that the interest from the borrowedcapital is considered as an expense. The interest from the debt is included asan expense which is a deduction from the income. Thus, the income will be lesserand the income tax will also be lowered. 

How does a business owner ensure that elements of total qaulity management positively impact on a business?

Answers

There are various ways in order for a business to ensure that elements of total quality management positively impact the business.
- Stop depending upon inspection to be able to make sure that quality is ok.
Get rid of any slogans, exhortations and targets aimed at employees
Eliminate the barriers that erode pride of workmanship, such as an annual evaluation or merit-based system

Original price 66.00 Brandon was tired of singing to himself. Brandon saw that a hand-held music player was marked down of the original price. If the item was marked up by 1/2 before it was place on the sales floor, what was the price that the store paid for the music plauer? (Hint: You need to use the original price from the previous problem.) A. $42.67 B. 62.00 C. $56.89 D. 55.00

Answers

Answer:

A. $42.67

Explanation:

1. "Markup" is defined as the amount by which the selling price of an item is increased above its cost to the retailer. (Source: BusinessDictionary.com)

2. The formula for calculating markup is: markup = (selling price - cost) / cost. (Source: Investopedia)

3. To find the cost of an item to the retailer, we can use the formula: cost = selling price / (1 + markup). (Source: Khan Academy)

Now, let's work through the problem using these formulas:

1. First, we know that the original price of the hand-held music player was $66.00.

2. Next, we know that the item was marked up by 1/2 before it was placed on the sales floor. This means that the markup is 1/2, or 50%.

3. To find the cost of the item to the retailer, we can use the formula: cost = selling price / (1 + markup). In this case, the selling price is $66.00, and the markup is 50%, so:

cost = $66.00 / (1 + 0.5)

= $66.00 / 1.5

= $42.67

Jamal tried to apply for a mortgage. However, he was turned down for the loan because the loan officer noticed that he had made late payments to his credit card and he had not made payments on a loan. What questions should he have asked himself before deciding to buy a home

Answers

Answer:

The two questions that he must ask from himself are:

  • Do you have credit report?
  • Do you have good credit score?

Explanation:

The reason is that the banks are giving you money and are worried about whether or not you are going to pay them back or not. So they require some evidences whether the person has any credit report and good credit score which shows that the person will be worried to pay the bank and if he is not able to pay he find alternative as he is a responsible person. So these two questions assesses whether the person is capable to pay the mortgage.

Answer:

answer is Do you have a steady income and stable job?

hope it helps!

Explanation:

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?A. The domestic price of automobiles would fall.B. The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.C. The number of unemployed workers in the domestic automobile industry would rise.D. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

Answers

Answer:

A. levied on imports, whereas a quota is imposed on exports.

B. levied on exports, whereas a quota is imposed on imports.

C. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.

D. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.

Explanation:

Select all of the steps for calculating net worth. select all that applyList your assets.
Total your assets.
List the names of your credit cards.
Total your liabilities.
List your liabilities.
Subtract your liabilities from your assets.
Add your liabilities and your assets.

Answers

Answer:

List your assets.

Total your assets.

List your liabilities.

Total your liabilities.

Subtract your liabilities from your assets.

Explanation:

Assets are the resources owned by a person as a result of past events for which future economic benefits are expected to flow to that person or entity. Such includes Cash, Receivables, Inventory, Fixed assets etc

A liability on the other hand is an obligation expected of a person as a result of a past event, for which future economic benefits are expected to flow out of the entity or person. Examples of these are Payable, loans, accrued expenses etc

The total assets is value of resources owned by an entity while total liabilities is the value of resources owed hence a net off between both items give the net worth of a person. As such to compute net worth, List your assets, Total your assets, List your liabilities, Total your liabilities and Subtract your liabilities from your assets.

-List your assets.

-
List your liabilities

-Subtract your liabilities from your assets.