Which allows an investor to practice the theory of a security limit order: a mutual fund or an exchange-traded fund? Explain why
What will be an ideal response?
Answer: Exchange-traded funds can be sold throughout the day, so they allow investors to buy or sell ETF shares when they reach a specified price—which is the theory behind a limit order. Mutual fund shares can only be bought or sold at the end of the trading day.
Explanation: In a limit order, a security is bought or sold only when it reaches a specified price threshold. Because exchange-traded funds can be sold at any time when markets are open, they allow investors to trade ETF shares when the threshold is reached. Mutual funds can only be traded at the end of the trading day, so investors buy or sell at the closing price.
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A) fulfilling the basic spirit of the sales contract B) giving them what they paid for C) giving them what they paid for with excellent execution D) not only giving them what they paid for but creating a satisfying experience with attentive customer service E) not only giving them what they paid for but adding in free services and products
A financial advisor is about to build an investment portfolio for a client who has $100,000 to invest. The four investments available are A, B, C, and D. Investment A will earn 4 percent and has a risk of two "points" per $1,000 invested
B earns 6 percent with 3 risk points; C earns 9 percent with 7 risk points; and D earns 11 percent with a risk of 8. The client has put the following conditions on the investments: A is to be no more than one-half of the total invested. A cannot be less than 20 percent of the total investment. D cannot be less than C. Total risk points must be at or below 1,000. Let A be the amount invested in investment A, and define B, C, and D similarly. Formulate the linear programming model.