Indexed funds can produce higher returns than managed funds

Assignment Help Financial Management
Reference no: EM13848459

Studies have shown that indexed funds can produce higher returns than managed funds; this is evidence in support of:

A. the efficient markets hypothesis.

B. rational exuberance.

C. the effectiveness of adaptive expectations.

D. a random walk.

Reference no: EM13848459

Questions Cloud

Some economists believe that investment banks : Some economists believe that investment banks ________ IPOs; the evidence they point to is that the stock price ________ in the secondary markets.
Online auction rather than investment bank to issue : Which of the following are reasons Google chose to use an online auction rather than an investment bank to issue its IPO.
At the rice processing plant : At the rice processing plant, 750 kg of rice containing 320 ppb total arsenic was thoroughly mixed with 250 kg of rice containing 480 ppb of total arsenic.  The rice was loaded into 1-kg bags?
Investment banks reduce the problem : Investment banks reduce the problem of ________ by ________.
Indexed funds can produce higher returns than managed funds : Studies have shown that indexed funds can produce higher returns than managed funds; this is evidence in support of:
Explain how your personal characteristics : Describe where you would place yourself within a contemporary life cycle. Explain how your personal characteristics as well as sociocultural dimensions influence the choices you make as a health care consumer
The bid-ask spread on security is the difference between : The bid-ask spread on a security is the difference between:
The efficient markets hypothesis states : The efficient markets hypothesis states that:
Use the bootstrap method to calculate all zero rates : The price of a 1-year zero is $96.00, the price of a 2-year 10% coupon bond is $107.30 and the price of a 3-year 8% coupon bond is $102.25. Use the bootstrap method to calculate all zero rates. Given the bonds in a, what is the price of a 3 year 5% c..

Reviews

Write a Review

Financial Management Questions & Answers

  Cash flow data-What is the projects IRR

Fred Corp is considering a project that has the following cash flow data. What is the project's IRR? Not the project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.

  Yield to maturity-value of bond

A $1,000 par value 10-year bond with a 10 percent coupon rate recently sold for $900. The yield to maturity is:

  The investors geometric average return

An investor bought stock in a company for $10,000. Five years later, the investment (including reinvested dividends) was worth $8,000. The investor's geometric average return was:

  Two companies are considering the acquisition of defenseless

Two companies are considering the acquisition of Defenseless, Inc. Buyer A is a strategic buyer and Buyer B is a financial buyer. The following information pertains to Defenseless, Inc.

  What was the cash coverage ratio for the year

Hedgepeth Inc.’s net income for the most recent year was $16,185. The tax rate was 40 percent. The firm paid $3,906 in total interest expense and deducted $2,585 in depreciation expense. What was the cash coverage ratio for the year?

  Finds it difficult to obtain additional credit

A corporation can have so much financial leverage that it finds it difficult to obtain additional credit. To reduce this problem a corporation may lease, rather than buy assets. This "off balance sheet financing" makes the corporation's financial pos..

  What is the present value of a zero-coupon bond

What is the present value of a zero-coupon bond with five years maturity, a nominal value of $1,000 and a discount rate of 6%?

  What is its self supporting growth rate

Maggie’s Muffins, Inc., generated $5,000,000 in sales during 2013, and its year-end total assets were $2,500,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  Though the real estate market has been depressed in some

though the real estate market has been depressed in some countries due to the aftermath of the global financial crisis

  Part of the process of cost allocation

Which of the following is not part of the Process of cost allocation?

  Compute the effective cost of not taking the cash discount

Compute the effective cost of not taking the cash discount under the following trade credit terms:

  Global corporate social responsibility pyramid

Briefly discuss the four levels of corporate responsibility using Carroll's Global Corporate Social Responsibility pyramid.

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