How could reconcile the contradiction

Assignment Help Financial Accounting

Reference no: EM133337130

Case: Assets in ETFs in the U.S. have grown to more than $3 trillion from $305 billion a decade ago, according to 2018 Fact Book of Investment Company Institute. In theory, return on a long-only equity fund portfolio should be greater than or equal to the worst return on any stocks held by the portfolio at any given point in time. However, a distruption occurred on August 24, 2015. in New York, BlackRock;s iShares Selected Dividend ETF tumbled 35% to $48, its lowest level of the day. At the time the combined weighted values of the stocks the ETF held was $72.42 down just 2.7% for the day according to FactSet. GE had the greatest decline among DVY components at 21% BlackRock's iShares Select Dividend ETF trades under the ticker DVY and holds shares of U.s companies that consistently pay dividends. Its largest holdings include Lockheed Martin Corp. , Kimberly - Clark Corp and McDonald's Corp.

Question: The distruption in the DVY case seemly contradict the implication by the theory. How could reconcile the contradiction? Provide two possible explanations

Reference no: EM133337130

Questions Cloud

How would you word this if you were presenting it : show that we are all on the same page and support should be given on both ends. This will also help to convince team members, that change within

Explain how you would apply mis solutions to improve : explain how you would apply MIS solutions to improve this business. Explain what is the business, how it will apply MIS, and use at least four concepts from

Discuss the issues raised by this situation : From financial reporting and ethical perspectives, discuss the issues raised by this situation You are an accountant for Lanthier Company. Lanthier's president

Describe how succession planning for your own role : Discuss the negative outcomes that can result from poor succession management practices, and explain how companies can improve their succession planning

How could reconcile the contradiction : The distruption in the DVY case seemly contradict the implication by the theory. How could reconcile the contradiction? Provide two possible explanations

Write on team work-team building based on theory perspective : In the analysis I want to compare theory with the film's message based on the chosen perspective so that you can then present well-founded reflections.

What is a crm, how it can be used for his business : what is a CRM, how it can be used for his business, and why he should implement it. Give him some convincing examples. Provide details/explain.

Explain why would a management team to be opposed to a union : Explain why would a management team to be opposed to a union? What would be their approach to ensuring a union is not formed ??

Complete report outlining the research : Complete report outlining the RESEARCH needed to be conducted to achieve ABC Medical's recruitment goals. Once you have decided how ABC Medical

User Account

All Pages