Why is an investor concerned with how the investment characteristics of a market-cap-weighted bond index can change over time?
What will be an ideal response?
Investors desire a bond fund that is geared towards meeting their investment needs. Once they buy into this fund, they want its characteristics to remain the same given that their investment needs are unchanged. Characteristics that they want constancy with include cash flow, book-to-value ratio, dividend per share, sales growth, and the like. If the bond fund is tied to an index such as a market-cap-weighted bond index with characteristicsthat mirror their investment needs, they do not want that bond index to consist of bonds where its characteristics are changing.
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Lance Starr is paid one and one-half times the regular hourly rate for all hours worked in excess of 40 per week and double time for work on Sunday. Starr's regular rate is $12.50 per hour. During the week ended March 31, he worked 10 hours each day from Monday through Friday, no hours on Saturday, and 5 hours on Sunday. Starr's earnings for the week totaled
a. $500; b. $593.75; c. $625; d. $812.50; e. none of these.
DirecTV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ____ stage of its life cycle.
A. introduction B. growth C. maturity D. early E. decline
Which of the following is not considered nonlinear programming?
A) nonlinear objective and nonlinear constraints B) linear objective with nonlinear constraints C) nonlinear objective with linear constraints D) binary decision variable with nonlinear constraints E) integer decision variable with linear constraints
In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____.
A. service; good B. inexpensive good; expensive good C. product; good D. good; service E. inexpensive service; expensive good