What is the sales rep saying about the fund beta

Assignment Help Financial Accounting
Reference no: EM132987720

Question - A sales representative for a popular mutual fund is telling you why you should invest in their fund instead of the market portfolio. The sales rep claims that their fund is as good as the market when the market rises, but that it provides down-side protection. In other words, it doesn't fall as much as the market when the market falls. What is the sales rep saying about the fund's beta?

-The beta is less than 1.

-The beta is equal to 0 when the market rises and less than 0 when the market falls.

-The beta is equal to 1 when the market rises and negative when the market falls.

-The beta is negative.

-The beta is equal to 1 when the market rises and less than 1 when the market falls.

Reference no: EM132987720

Questions Cloud

Calculate the current tax liability for the year ended : Depreciation rate - machinery 25%. Calculate the current tax liability for the year ended 30 June 2024, and prepare the adjusting journal entry
Leadership development in business : Determine whether the thinking behind this statement leaves a select demographic out of the running for leadership development in business.
Calculate depreciation and book value for each year : Calculate depreciation and book value for each year of the machine's estimated useful life using the double-declining balance method
Culpability element help or hinder lori in lawsuit : Identify the required elements Lori would have to prove in civil court to be successful? How does the culpability element help or hinder Lori in her lawsuit?
What is the sales rep saying about the fund beta : In other words, it doesn't fall as much as the market when the market falls. What is the sales rep saying about the fund's beta
Discuss the elements of strategic flexibility : Explain flexibility as a tool for strategically adapting and changing in the healthcare organization. Discuss the elements of strategic flexibility.
Why do such conflicts develop : Why do such conflicts develop? Provide at least two examples of agency problems. Are such conflicts more likely to occur in smaller or larger organizations? Why
Summarize three global challenges in health care : Summarize three global challenges in health care and the theories created to help alleviate them. Explain how these challenges could directly affect you.
Compute the under- or overapplied overhead : Compute the under- or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate calculations to 2 decimal places.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd