During the amazing bull market of the 1990s, an investment strategy of simply mimicking the Standard & Poor’s 500 Index became popular. The S&P 500 is a value-weighted market index of 500 common stocks thought to measure overall movement in the aggregate stock market. Under this investment strategy, the amount invested in each stock is proportionate to each component’s share of the total market valuation of all 500 companies. If the largest component, ExxonMobil, accounts for roughly3.4 % of the index, and the second largest component, GE, accounts for roughly 2.8 %, index followers simply invest 3.4 % of their portfolio in ExxonMobil, 2.8 % in GE, and so on. A. Explain how the stock market’s ability to discipline the managers of underperforming firms could be reduced if all investors simply purchased index funds that mimicked the S&P 500. B. Explain how institutional investors, even those with index funds, actually discipline the managers of underperforming firms in practice.
Express the following absorbances in terms of percent transmittance:(a) O.oJ8 (d) 0.241(b) 0.95X (e) 0.435(c) 0.399 (f) 0.692Jun 23 2020
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectiv...Feb 08 2020
Maria has decided always to spend one-third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing ...May 04 2020
The three types of buying situations A.create confusion among B2B sellers.B.suggest that B2B sellers should develop one marketing mix to use for all situations.C.requi...Dec 14 2019
Paper, Order, or Assignment Requirements Review the “Habits of a Critical Thinker” in Table 1.1 of Mayfield’s Introduction. This list can be overwhelming at first but kno...Jul 24 2020
PSY 326 Critique of Quantitative Research ArticleCritique of a Research StudyRead the full texts of the study you selected in Week One and the sources you included in you...Aug 09 2020
An investor wishes to assess a company's financial position at the end of the period. Which financial statement would the investor probably examine?A) the cash flow s...Dec 24 2019
A supply of geothermal hot water is to be used as the energy source in an ideal Rankine cycle, with R-22 as the cycle working fluid. Saturated vapor R-22 leaves the boile...Jun 07 2020
Specify an acceptor impurity type and concentration (in weight percent) that will produce a p-type silicon material having a room temperature electrical conductivity of 5...Jun 28 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.