PLS HELP ASAP Progress 04Finish SectionCandidate: SHARMA HimanshiBrian manages an equity portfolio that had a negative Sharpe ratio last year when the market returned5% and the risk-free rate was 1%. What does this mean?四AcronymsCalculatorA.B.His portfolio had a lower volatility than the benchmark.His portfolio's return was less than the risk-free return.C.His portfolio's return was lower than the market return.D.His portfolio under-performed compared to the benchmark. Progress 0%CandidatWhich institutional client is the primary user of prime brokerage services?AcronymsCalculatorA.Corporate treasuries.B.Mutual funds.C.Investment dealers.D.Hedge funds.

Q 1. D. Hedge funds. Q 2.D. His portfolio under-performed compared to the benchmark.Explanation:Q 1.…

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 40P: Many retirement funds charge an administrative fee each year equal to 0.25% on managed assets....

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Similar questions

Which type of financial intermediary provides individual investors with professional management of their money and diversification in order to limit the risk of investing? A. mutual funds B. insurance companies C. hedge funds D. investment banks
The main advantage of mutual funds is that theyprovidea. a return insured by the government.b. an easy way to hold a diversified portfolio.c. an asset that is widely used as the medium ofexchange.d. a way to avoid fluctuations in stock and bondprices.
You have decided to invest in an open-end mutual fund. You are currently looking at a fund-Washington Premier Fund-in your newspaper. The fund is quoted as: Name NAV Net Chg YTD %RET 36.25 0.15 6.95 Assume that today's opening price of Washington Premier Fund equals yesterday's closing price. If you wanted to make your investment first thing this morning, then you should expect to pay for each share of since it Yesterday, each share of sold for $35.95 $43.50 $36.25 $34.44 $0.15 less $0.15 more $6.95 less $6.95 more If you had $8,000 available to invest, you could purchase than it did the day before, and offers a return of 294 368 assesses a 0.15% fee 276 shares of. is a no-load fund charges a 6.95% fee 221 Your evaluation of the Washington Premier Fund is made easier by the fact that: your investment choices are limited. mutual funds are careful to explicitly state their investment objectives. a mutual fund broker will select a customized mix for you. 0.15% 36.25% 6.95% for the year.
1. How does a mutual fund lower transactions costs through economies of scale?
A risk-averse investor will: a. Always accept a greater risk with a greater expected return b. Only invest in assets providing certain returns c. Sometimes accept a lower expected return if it means less ri d. Never accept lower risk if it means accepting a lower expected return
Define asset and liability
Financial institutions “hedge” to reduce:A. transactions costB. diseconomies of scaleC. riskD. the strike price.E. margin requirements
need detailed answer Which type of derivative reduces risk the most? Group of answer choices A. An options contact. B. A commercial paper contract. C. A futures contract. D. A forward contract.
Ali is an investment adviser for Affin Financial Solutions (AFS). He entersinto an arrangement with a lawyer regarding the mutual referral of clients. Aliwill refer AFS clients needing legal services to the lawyer in return for thelawyer recommending clients in need of financial advisory services. Give thereasons why such an arrangement is an unacceptable practice.
When an investor purchases A. Stock. B. A mutual fund. C. Real estate. D. A Bond. then he/she is purchasing a claim on the net worth of the firm.
QUESTION 25 You buy a mortgage pass through security with a 7.5% coupon rate and a 5.5% discount rate. The price at the time of purchase reflects a 10% annual prepayment rate. One hour after your purchase, the expected annual prepayment rate falls to 5%. The value of your mortgage pass through security should: A. Remain the same B. Rise OC. There is not enough information to answer the question D. Fall
Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds: Select one: O a. always earn a higher rate of return than an investor could obtain with a single stock or bond. Ob. allow investors with relatively small amounts of money to diversify their investment portfolios. C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock. O d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.

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