an investor purchases 1,000 shares of each of the stocks in a price-weighted index at their closing prices (ignore transactions costs). on a total return basis, if the index stocks remain the same, this portfolio will most likely:

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Answer 1

B. Outperform the index over time.

When an investor, portfolio manager, fund, or other investment specialist outperforms the market, they are said to "beat the market." A company that is said to "Outperform" has reported quarterly or annual earnings that exceeded market analysts' consensus expectations.

Outperform is a rating that analysts can give to a company's stock. When a stock receives an outperform rating, analysts expect it to outperform the overall market, a specific financial index, or other companies in the same industry. Outperform isn't always the best rating for a company's stock. Outperforming is usually the highest or second-highest rating available because each brokerage firm has its own rating system.

An outperforming rating does not always imply that a stock will outperform the market. It simply means that analysts believe it will happen. Investors should also conduct their own research rather than relying solely on market ratings to make investment decisions.

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The complete question is:

An investor purchases 1,000 shares of each of the stocks in the Dow Jones Industrial Index at their closing prices (ignore transactions costs). On a total return basis, if the index stocks remain the same, this portfolio will certainly:

A. perform exactly like the index over time.

B. outperform the index over time.

C. under perform the index over time.

D. perform better than the index over some periods, and worse over others.


Related Questions

the market in which loans are bought and sold is called the:

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Loan investments are bought and sold in the debt market, also known as the bond market.

What is the credit market like?

The market where financial institutions lend money to borrowers and occasionally repackage (sell to investors) those loans: Home loan, domestic, and consumer markets In recent years, the market for consumer loans has experienced the strongest growth. Loan investments are bought and sold in the debt market, also known as the bond market. Bonds cannot be exchanged in a single physical location. Most transactions are carried out by brokers, significant institutions, or individual investors. The primary loan market is the one where loans are given to borrowers, while the secondary loan market is the one where financial institutions buy and sell these loans.

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g if the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, this indicates that, if other things are unchanged, the price elasticity of demand is:

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If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, this indicates that, if other things are unchanged, the price elasticity of demand is 0.5.

The extent to which demand reacts to a variation in an economic component is known as the elasticity of demand. The most continued and important economic factor considered while calculating the elasticity of anything is price. The Income bracket and the accessibility/reachability of substitutes are additional factors.

Elasticity scales how demand shifts in response to changing economic variables. If demand for a good or service does not vary as a result of price changes, it is said to have inelastic demand. Luxury products and edible utilities like foods and different kinds of beverages are elastic goods because their demand is influenced by price changes for them.

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when shoppers at costco explore the aisles, often there are employees handing out small servings of various food products for customers to try. this sales promotion tactic is known as

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When shoppers at Costco explore the aisles, often there are employees handing out small servings of various food products for customers to try. This sales promotion tactic is known as sampling.

What is sampling?Sampling in market research refers to gathering opinions from a select group of people in order to learn more about the entire group. Companies typically determine the requirements and preferences of their target market before introducing products to the market. In order to do this, they may use sampling of the target market's population to better understand these needs before eventually developing a good or service to meet them.Sampling is the process of choosing the group from which you will actually collect data for your study. For instance, you could interview a sample of 100 students if you were examining the viewpoints of students at your university. With the help of sampling, you can test a statistical hypothesis on the features of a population.

Therefore, when shoppers at Costco explore the aisles, often there are employees handing out small servings of various food products for customers to try. This sales promotion tactic is known as sampling.

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a 38-year-old investor places $25,000 into a single premium deferred variable annuity. twenty years later, with the account valued at $72,000, the investor withdraws $25,000. if the investor is in the 25% marginal income tax bracket, the total tax liability is a) $6,250. b) $8,750 c) $17,500. d) $0.00

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The total tax liability is $6,250

What is the total amount of tax due?

The total amount withdrawn is taxable because the account is a qualifying annuity. Additionally, the investor must pay an additional 10% tax because she is under the age of 59.5.

Your gross tax obligation is the sum of your taxable income less any tax deductions. Your gross tax liability less any valid tax credits equals your total income tax obligation.

Tax liability is the sum of money you owe to the government in the form of taxes. It represents the entire amount of tax you owe the government.

The effective total tax is calculated as follows: 25% + 10% = 35%

Total tax du= 25%  x $50,000, or

=0.25  x  $25,000, for a total of $6,250.

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which of the following are not ways that budget deficits can have a negative effect on future economic growth? when they are financed with foreign-held treasury debt. when interest payments are made to foreigners. when the debt is held domestically. when they are financed with an increase in taxes.

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The one that are not ways that budget deficits can have a negative effect on future economic growth is option C: when the debt is held domestically.

High and rising deficits and debt have a number of negative effects, including high inflation, rising interest rates, slower economic growth, increased interest payments, reduced fiscal space, increased geopolitical risk, and generational imbalances. Thankfully, none of these effects are inescapable. Therefore, option C is the only one not having any negative effects on economic growth.

When the economy is booming, the opposite occurs. These effects, sometimes referred to as the economy's "automatic stabilisers," take place without any modifications to governmental policy. The deficit will automatically decrease as the economy improves due to rising tax revenues and declining unemployment.

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the schedule below reports the beginning balances and activity during the year in a town's supplies fund. the government accounts for supplies on a purchases basis. fund balance (unreserved 1/1) $400 fund balance (reserved for encumbrance 1/1) $240 fund balance (reserved for inventory 1/1) $170 total fund balance, january 1 $810 appropriations $3,400 actual revenues $3,200 supplies ordered $3,160 supplies received $3,360 supplies paid-for $2,800 supplies used $3,280 reserve for encumbrance is : $120 $45 $40 $60

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Fund Balance is the total accumulation of working surpluses and deficits considering the fact that the opening of a neighborhood government's existence. The Fund Balance Formula: Fund Balance = Assets – Liabilities.

Why is fund stability important?

It is integral that governments maintain ample degrees of fund balance to mitigate cutting-edge and future dangers (e.g., revenue shortfalls and unanticipated expenditures) and to make certain secure tax rates. In most cases, discussions of fund stability will excellent center of attention on a government's widespread fund.

Is fund balance an asset or liability?

Fund balance (Equity) is in reality the distinction between assets and liabilities. In general, it is the stability remaining after the assets have been used to satisfy the fantastic liabilities.

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forward-thinking organizations are creating the position of __________ to oversee the development and management of innovative social media programs.

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Forward-thinking organizations are creating the position of Chief Digital officer to oversee the development and management of innovative social media programs.

A product or a concept becomes modern when it stands proud from the rest and virtually makes the clients' lives simpler. A hit alternate that can convert understanding and thoughts into a benefit – in the shape of recent or stepped-forward merchandise/offerings is capable of being innovative.

Lego has been converting the substances of its well-known bricks to biodegradable oil-based totally plastics. The first electric-powered automobiles added to the automobile marketplace have been also innovative, and new batteries with longer stages that hold popping out also are an instance of innovation.

Creativity, vital wondering, and complicated hassle-solving. All three of those abilities are vital to growing and bringing to existence a new innovation that solves a real problem and provides a significant price.

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Given the following objective, raise brand awareness to at least 40 percent among consumers 18 to 49, which critical element of an actionable objective is missing?.

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The critical element of an actionable objective that is missing is E. Quantitative benchmark.

How to illustrate the information?

One can use quantitative benchmarking to create a quantitative baseline or set of standard metric scores that you can use to re-evaluate your experience at regular intervals or after major updates and changes. These baselines can be set for a single product or for multiple product lines.

The goal lacks a quantitative benchmark, which is a number or percentage that indicates whether or not the goal was met. In this case, the goal should state how brand awareness will be increased to 40% among consumers aged 18 to 49.

Therefore, based on the information illustrated, the correct option is E.

The question is attached below.

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a company provides the following information: cash receipts from customers: year 1 year 2 year 3 from year 1 sales $95,000 $120,000 from year 2 sales 200,000 $ 75,000 from year 3 sales 50,000 225,000 what is the accrual-based revenue for year 2?

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The accrual-based revenue for year 2 is $275,000 for $200,000 and $ 75,000.

Given data,

year 1 sales are $95,000, $120,000

year 2 sales are $200,000, $ 75,000

year 3 sales are $50,000, $225,000

the formula is :

The accrual-based revenue = revenue1 + revenue 2

                                               = $200,000 + $ 75,000

                                               = $275,000

The accrual-based revenue is  $275,000

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herring signed the memorandum, but he did not in fact alter his will to include grundge. the estate refused to pay, and grundge sued. was there consideration? please prepare a brief legal memorandum that discusses and resolves this issue.

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The principles for preparing memorandums are similar to the principles involved in preparing: email messages.

What are memorandums and email messages?

Memorandums and emails messages are both useful in passing across information from one person to another usually within an organization.

In this case, it should be noted that The principles for preparing memorandums are similar to the principles involved in preparing: a.email messages. A debit memorandum is an information recording adjustment for three particular cases: reducing the account balance of a bank customer, under filling goods or services or a small credit balance internally offset to a customer account. A debit receipt is provided to an account holder in financial institutions stating that now the balance of the account was reduced due to a cause apart from cash withdrawal or cash search. Because of bank fees or bundled check expenses, debit memos may arise. Usually, the memos and their monthly bank statements are forwarded to bank clients.

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which of the following is a reason cash flows may differ from accounting income? depreciation is a tax-deductible expense but is not a cash outlay. the total number of units sold will be different for accounting income and cash flows.

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The depreciation is a tax-deductible expense but is not a cash outlay. the total number of units sold will be different for accounting income and cash flows.

A tax-deductible expense is an expense that can be legally deducted from the gross profit. This reduces your gross profit and therefore the amount of tax you need to pay. In general, the expenses necessary to run a business are very likely to be tax deductible.

All deductions are expenses, but not all expenses are considered deductions. We'll get to the point in a moment. However, deductions occur when expenses are deducted from a business owner's or individual's taxable income. This reduces the amount of tax you have to pay in a given period.

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A computer-based system for continually gathering internal and external information is called.

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A computer-based system for continually gathering internal and external information is called marketing information system (MIS).

A marketing information system, often known as a MIS, is a system for collecting, storing, processing, and disseminating critical marketing data. A marketing information system's input is concentrated on gathering all the necessary internal and external data for interpretation and analysis. A marketing information system's output is the dissemination of a results to all top management and members of the corporate marketing division. The data can then be used by marketers to inform better marketing choices that will support the business to succeed.

With the help of marketing information system (MIS), business organizations are able to gather external as well as internal information and accordingly design their marketing plan.

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which of the following items are plant assets? (check all that apply.) multiple select question. land held for expansion building being used for operations equipment being used in operations equipment with no value

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The items that are plant assets are c)equipment being used in operations,b) building being used for operations.

In the field of business, plant assets can be described as fixed assets that are used by a company for a  long period of time in order to make products that are sold.

The equipment that is used by a business is a fixed asset that will be used for a long time to produce products for selling by a business. Hence, the equipment that is being used for operations is plant assets.

Also, the building that is being used for the operations of a business is a fixed asset that will be used for a long time for producing products in the building. Hence, it is a plant asset.

Although a part of your question is missing, you might be referring to this question:

which of the following items are plant assets? (check all that apply.) multiple select question.

a) land held for expansion building

b)being used for operations

c) equipment being used in operations

d)equipment with no value

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what is a tax credit?

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A tax credit is a reduction in your tax liability on an exact dollar for dollar basis.

Define the term tax credit?

You owe less income tax to the state and federal governments thanks to tax credits.

Credits are typically created to promote or reward specific actions that are thought to be good for the economy, the environment, or any other major cause the government deems vital.All taxpayers have access to a variety of tax credits that can be used to offset a variety of costs and circumstances. The federal government provides a credit for the price of buying solar panels and used in your home as an incentive for tax payers to conserve the environment.A federal adoption credit will lower your tax bill to aid families who want to adopt a child by offsetting some of the expenses you spend when adopting a child

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how long will it take an investment to double in value if the interest rate is 10% compounded continuously? (round your answer to two decimal places.) yr (b) what is the equivalent annual interest rate? (round your answer to two decimal places.)

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The time period of the investment to double the value will be 6.93 years and equivalent annual interest rate will be 10.52%.

Compound Interest is the type of interest at which any individual lends money to the borrower in which the amount after one year becomes principle for the second year. Since, the interest is compounded continuously, the formula for amount is given as

[tex]A = Pe^rt[/tex]

where A is the amount, P is principle, r is rate of interest and t is time. Now, the amount gets double the principle that is A = 2P and r = 0.1

[tex]2P = Pe^{0.1t}[/tex]

[tex]2 = e^{0.1t}[/tex]

Taking log on both sides

ln(2) = 0.1t  

t = ln(2)/0.1

t = 6.93 year that is time is 6.93 years.

Now, the formula for equivalent annual interest rate is given as

[tex]2 = (1 + I)^t[/tex]

where I is interest rate and t is time = 6.93.

[tex]2 = (1 + I)^{6.93}[/tex]

[tex]2^{0.1443} = 1 + I[/tex]

1 + I = 1.1052

I = 1.1052 - 1

I = 0.1052

I = 10.52% that is Interest rate is 10.52%

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why set up a recurring journal entry? answer: a. you don't expect the customer to pay their debt. b. you want to transfer funds from your checking to your savings account every month. c. you will make multiple payments on a fixed schedule. d. you need to replenish the petty cash fund.

Answers

b. you want to transfer funds from your checking to your savings account every month.

Why do we employ repeating entries?

When you need to make the same entries every month or on particular dates, you utilize recurring entries. You can set up these entries in the system and then run a job to process them rather than having to manually create them each month.

What is a repeated journal entry?

Particular expenses or transactions that are repeated every accounting period are the subject of recurring journal entries. They are frequently carried out to document things like allocations, depreciation, amortization, and accruals.

Recurring Journal Entries are used to enter journal entries that are a fixed amount that repeat each period, such as depreciation and amortization.

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Break-even analysis examines the relationships between which of the following?

a. Price
b. Profit
c. Costs

Answers

Answer: c. Costs

Explanation:

The break-even analysis examines the relationship between costs like fixed costs , variable costs , and total costs .

non-value-added activities in a process design can be eliminated by:

Answers

Non-value-added activities in a process design can be eliminated by using value stream mapping.

In chemical engineering, process design is the selection and ordering of units for the desired physical and/or chemical transformation of a material.

Process design is at the heart of chemical engineering and can be considered the pinnacle of the field, bringing together all the components of the field. Process design is at the heart of operations management (OM). It is the process of creating and improving systems that convert the input to output. Process design involves understanding how work is done in an organization, and then designing and implementing ways to improve it.

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2008 1 Mar Started business with $1,000 cash.
credit or debit​

Answers

Answer:

The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.

Rep. Mike gallagher of wisconsin and rep. Ruben gallego of arizona both served in which branch of the u. S. Armed forces?.

Answers

Rep. Mike Gallagher of Wisconsin and rep. Ruben Gallego of Arizona both served in US Air Force as a United States Marine Corps intelligence officer

Michael John Gallagher (born March 3, 1984) is a United States Representative from Wisconsin's 8th congressional district. Gallagher was a United States Marine Corps intelligence officer who served on active duty for seven years (2006-13). As a counterintelligence officer and member of the CENTCOM assessment team, he assessed American military strategy in the Middle East and Central Asia.

Ruben Gallego is a Marine Corps intelligence officer veteran rising progressively from Phoenix's deep blue district. And he is quickly becoming one of the most visible lawmakers on Capitol Hill working on military and veterans issues. He was raised in a strict military culture and now serves in the pristine halls of Congress. His experience as a combat arms soldier gives him credibility in military circles.

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if the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would

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If the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would decrease the firm's profit by $19.

A company that offers professional services is referred to as a firm. This can be a corporation, limited liability company (LLC), or partnership.

When you say someone is firm, you're implying that they act in a way that indicates they won't change their mind or that they are the one in charge. She needed to treat him firmly. The marginal cost, or price of producing more, is the adjustment to the total cost that results from increasing the quantity produced. Marginal cost is the additional cost incurred when producing a second good. Say, for instance, that it costs $100 to produce 100 automobile tires. An additional tire would cost $80 to produce.

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demand is said to be inelastic when group of answer choices a reduction in price results in an increase in total revenue. a reduction in price results in a decrease in total revenue. an increase in price results in a reduction in total revenue. the elasticity coefficient exceeds one.

Answers

Demand is referred to as being inelastic when a price decrease results in a decrease in overall revenue.

Inelastic demand is when a customer's desire for a product does not change as much as a product's price changes. When prices increase by 20% and demand decreases by just 1%, the demand is said to be inelastic. Common household products and services are a common source of this issue.

Producers have the option of charging high prices for goods with inelastic demand or low prices for those with elastic demand. As a result, management must be aware of demand elasticity in order to optimize profit.

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How might a start-up company that has been using a paper-based document control approach benefit from switching to a cloud-based plm system?.

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A start-up company that has been using a paper-based document control approach can benefit more from switching to a cloud-based PLM system as it offers more efficient development processes.

The PLM system offers an automatic method of services which are more reliable as compared to the paper-based document method.

Product lifecycle management (PLM) helps the various workers in a project to collaborate with each other through technology hence making collaboration and development of the project easier.

The tasks related to a project will become automated due to Product lifecycle management (PLM), hence making the project more efficient overall.

A cloud-based PLM system is cost-effective as one does not need to buy any software or hardware resources for it.

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sarah is a great teacher; however, she struggles with the technology used by potential students and school districts, and thus is not able to find work. sarah's type of unemployment is considered . cyclical seasonal frictional structural

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Involuntary unemployment due to mismatch between skills that the workers possess and, the set of skills demanded by the employers causes structural unemployment.

Sarah's type of unemployment is considered structural unemployment.

What is structural unemploymentLong-term unemployment brought on by changes in the economy is referred to as structural unemployment.Even while there are open positions, there is a mismatch between what employers require and what the current workforce can provide.Long-term structural unemployment typically requires significant reform to reverse.Technology has a tendency to make structural unemployment worse by marginalizing some employees and making some jobs, like manufacturing, obsolete.

A coincidence indicator is an economic statistical indicator which changes along with general economic conditions. It reflects the current status of the economy. The weekly jobless claim is a coincident indicator.The consumer confidence index is a leading indicator, since a rise or fall of the index is a strong indication of the future level of consumer spending.The unemployment rate is a lagging indicator. Since, unemployment tends to increase after an economy faces a downturn. It tends to decrease after the economy faces an upward swing.

A public good is non-rival and non-excludable. Therefore, option 1 is incorrect.Private goods are rival and excludable. Therefore, option 2 is incorrect.Common goods are rival and non-excludable. Option 3 is incorrect. The last option 4 is correct

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When is Cyber Monday 2021?

Answers

Answer:

Monday

, November 28

Explanation:

All other things held constant, the present value of a given annual annuity increases as the number of periods per year ncreases ed a.True b.False

Answers

'All other things held constant, the present value of a given annual annuity increases as the number of periods per year increases

Present value (PV) is the present value of a future amount of money or cash flow stream given a particular rate of return. Future cash flows are discounted by a discount rate, and the higher the discount rate, the lower the present value of future cash flows.

If a person currently has $10,000 and he invests it at an interest rate of 10%, he will use the money for a year and he will have earned $1,000. Instead, if she didn't have access to that money for her one year, she would lose her $1,000 in interest income.

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Write 3-4 paragraphs telling me your thoughts about supply chain issues and inflation

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Demand-pull, supply-pull, and supply-pull inflation are the three different types of inflation. Cost-push inflation is a phenomenon. internal inflation

The cost of living in a nation or the overall rise in prices are two examples of broad measures that are frequently used to define inflation. It is the rate of price growth over a predetermined time frame. The cost of living in a nation or the overall rise in prices are two examples of broad measures that are frequently used to define inflation.

Monetarists believe that too many dollars chasing too few goods is what causes inflation. In other words, there is now an excessive amount of money.

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How many credits do you usually need to take in order to be considered full-time?.

Answers

You usually need 15 credits to be considered full time

Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 2017 $80,800 92,800 117,500 28,400 143,000 270,000 (50,000) $682,500 2016 S 48,400 33,000 102,850 26,000 114,000 242,500 (52,000) $514,750 Assets as Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equit Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $112,000 16,500 110,000 220,000 224,000 67,300 17,000 150,000 175,000 105,450 $514,750 Total $682,500 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: $392,780 Cost of goods sold Operating expenses, excluding $135,460 depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Net income Additional information: I. New equipment costing $85,000 was purchased for cash during the year. 2. Old equipment having an original cost of $57,500 was sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method.

Answers

Answer:

1. New equipment costing $85,000 was purchased for cash during the year.

2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.

3. Bonds matured and were paid off at face value for cash.

4. A cash dividend of $40,350 was declared and paid during the year.

Instructions:

Prepare a statement of cash flows using the indirect method.

During the year, a cash dividend of $40,350 was declared and paid. On December 31, 2017, there will be 80,800 in cash.

A cash flow statement contains what exactly?

All of the cash inflows business experiences from continuing operations and outside investment sources are detailed in a cash flow statement. The sum of the cash flows from operations, investments, and financing is known as net cash flow and is included in the cash flow statement.

The net cash flow is calculated using the indirect approach, which also adjusts the cash input and outflow to account for noncash expenses like amortization and depreciation. The net cash flow is then added back to the net income.

Cash flows from operating activities:

Net income                                                                      158,900

Add: Depreciation                                                        46,500

Add: Loss from selling plant assets                          7,500

Less: Increase in accounts receivables                        59,800

Less: Increases in inventory                                         14,650

Less: Increase in prepaid expenses                          by 2,400

Add: Increase in accounts payable                         44,700

Less: Decreases in accrued expenses payable             500

Net cash provided by operating activities (A)                180,250

Cash flows from investing activities:

acquisition of equipment                                                 85,000

Add: Purchase of investments                                 29,000

Add: Sale of equipment                                                    1,500

Net cash used for investing activities (B)                         112,500

Cash flows from financing activities:

Repayment of bonds payable                                          40,000

Add: Issuance of common stock                                  45,000

Add: Payment of cash dividends                                  40,350

Net cash provided by financing activities (C)                  35,350

Net increase in cash ((D) = (A) + (B) + (C))                          32,400

Add: Cash balance, December 31, 2016,                   48,400

Cash balance, December 31, 2017,                                   80,800

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question mode multiple choice question the market where businesses buy labor from households is called the .

Answers

The market where businesses buy labor from households is called the Factor Market.

In economics, a factor market is a market in which factors of production are bought and sold. Factor markets allocate production factors such as land, labor and capital, and distribute income to owners of production resources such as wages and rent. Buy, rent, or rent the things you need to produce goods and services. These needs are factors of production such as raw materials, land, labor and capital.

Simply put, it is the market for factors of production such as land, labor and goods. Examples of factor markets are job fairs, owners selling their land to shopping malls, and banks lending money to entrepreneurs.

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