Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 439 Weeks Ago, 2 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 16 May 2017 My Price 5.00

Discuss the ethics of the 21% return claim made by the Damon Investment Company.

Ethics Case 6–1

Rate of return

The Damon Investment Company manages a mutual fund composed mostly of speculative stocks. You recently saw an ad claiming that investments in the funds have been earning a rate of return of 21%. This rate seemed quite high so you called a friend who works for one of Damon’s competitors. The friend told you that the 21% return figure was determined by dividing the two-year appreciation on investments in the fund by the average investment. In other words, $100 invested in the fund two years ago would have grown to $121 ($21  ÷  $100  =  21%)

Required:

Discuss the ethics of the 21% return claim made by the Damon Investment Company.

 

 

Answers

Alpha Geek
(8)
Status NEW Posted 16 May 2017 11:05 AM My Price 5.00

-----------

Attachments

file 1494934590-Answer.docx preview (138 words )
E-----------thi-----------cs -----------Cas-----------e 6-----------–-----------1 -----------Rat-----------e o-----------f r-----------etu-----------rn ----------- Th-----------e D-----------amo-----------n I-----------nve-----------stm-----------ent----------- Co-----------mpa-----------ny -----------man-----------age-----------s a----------- mu-----------tua-----------l f-----------und----------- co-----------mpo-----------sed----------- mo-----------stl-----------y o-----------f s-----------pec-----------ula-----------tiv-----------e s-----------toc-----------ks.----------- Yo-----------u r-----------ece-----------ntl-----------y s-----------aw -----------an -----------ad -----------cla-----------imi-----------ng -----------tha-----------t i-----------nve-----------stm-----------ent-----------s i-----------n t-----------he -----------fun-----------ds -----------hav-----------e b-----------een----------- ea-----------rni-----------ng -----------a r-----------ate----------- of----------- re-----------tur-----------n o-----------f 2-----------1%.----------- Th-----------is -----------rat-----------e s-----------eem-----------ed -----------qui-----------te -----------hig-----------h s-----------o y-----------ou -----------cal-----------led----------- a -----------fri-----------end----------- wh-----------o w-----------ork-----------s f-----------or -----------one----------- of----------- Da-----------mon-----------’-----------s c-----------omp-----------eti-----------tor-----------s. -----------The----------- fr-----------ien-----------d t-----------old----------- yo-----------u t-----------hat----------- th-----------e 2-----------1% -----------ret-----------urn----------- fi-----------gur-----------e w-----------as -----------det-----------erm-----------ine-----------d b-----------y d-----------ivi-----------din-----------g t-----------he -----------two------------ye-----------ar -----------app-----------rec-----------iat-----------ion----------- on-----------
Not Rated(0)