The following appears in big bold letters in a publication by State Street Global Investors' publication, "Beyond Active and Passive: Advanced Beta Comes of Age" (2014):
But in recent years, a "third approach" has emerged that blurs the
boundaries between alpha and beta.
Explain what this statement means.
The spectrum of bond strategies contains two general categories of strategies. First, a passive (beta) strategy is pursued if an investor believes the bond market is price efficient and the benchmark selected whose performance is replicated is a market-cap-weighted bond index. Second, an active (alpha) strategies is followed when the presumption is that there are pockets of price inefficiency that can be capitalized upon to outperform a market-cap-weighted bond index.
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During the year, Dempsey Corporation's current ratio increased while its quick ratio decreased. Which of the following could help explain this situation?
a. A decrease in accounts receivable during the year b. An increase in accounts payable during the year c. The sale of short-term investments during the year d. An increase in inventory levels during the year
Harvey has set aside an untouched pool of money in his company as a philanthropic community giving resource. For what kind of giving is this money most likely intended?
a. proactive b. development of skills-based giving c. community development d. reactive
Edwin Ghiselli identified ______ as the most important trait for effective leadership.
a. decisiveness b. supervisory ability c. initiative d. intelligence
Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to
a. no federal law. b. the Consumer Leasing Act. c. the Consumer Product Safety Act. d. the Truth-in-Lending Act.