Shen and Valerie are building their portfolios. Shen purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Valerie is not convinced. She buys shares in an index fund-a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio.

Shen builds his portfolio on the supposition that:

a) The stock market follows the efficient markets hypothesis

b) Stock prices follow a random walk

c) Stock analysts can use fundamental analysis to identify undervalued stocks

Option a

Explanation:

The efficient-market theory relates to the financial economics concept which claims that asset values represent all the knowledge available. The direct inference is that it is difficult to reliably "outperform the market" on a threat-adjusted basis because stock rates will respond only to fresh knowledge.

Thus, she is building her portfolio by including an index fund, which are the funds that are managed by copying a particular index of some proclaimed funds such as S and P etc.                                

happiness is the correct luck

explanation:

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"