Manuel and Poornima are building their portfolios. Manuel purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Poornima is not convinced. She buys shares in an index fund-a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio. Manuel builds his portfolio on the supposition that:
a. The stock market exhibits informational efficiency.
b. Stock analysts can use fundamental analysis to identify undervalued stocks.
c. Stock prices follow a random walk.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Manuel and Poornima are building their portfolios. Manuel purchases shares in a mutual fund and pays fees to a manager who actively manages ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
An athlete or entertainer can be considered a core product. true or false
Answers (1)
3. The Operations Section Chief: A. Develops and implements strategies and tactics to achieve the incident objectives. B. Sets up and maintains all incident facilities and food services. C. Coordinates communication between all responding agencies.
Answers (1)
Cindy is a popular actress and has won countless acting awards in her 15 years in the industry. people always ask her what her secret is, and cindy tells them, "hard work always pays off!" she adds that each time she acts she's giving her all.
Answers (1)
List three careers that require knowledge of science. List three careers that require the use of of math. List three careers that require the use of foreign language. List three careers that require the use of good writing skills.
Answers (1)
A company assigns overhead cost to completed jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 413 shows that $23,085 in direct materials has been used on the job and that $10,100 in direct labor cost has been incurred.
Answers (1)
New Questions in Business
The type of contract that comes into existence by simply speaking to one another is
Answers (2)
Alexie and x were motivated by many common factors. Discuss one similarity that motivated them.
Answers (1)
Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise.
Answers (1)
The owner invested $15,200 cash in the company in exchange for its common stock. The company purchased supplies for $550 cash. The owner invested $10,100 of equipment in the company in exchange for more common stock.
Answers (1)
Identify the internal control principle that is applicable to each procedure. The following reconciling items are applicable to the bank reconciliation for Ellington Company: (1) outstanding checks, (2) bank debit memorandum for service charge, (3)
Answers (1)