subject
Business, 03.03.2020 04:47 bbyitskeke1242

Federal Reserve Board Regulation T (Reg. T)1 allows an initial margin on stock purchases of 50% regardless of the volatility of the stock (i. e. 2:1 leverage). The margin of retail accounts is typically governed by Reg. T. By contrast, the margin of professional trading accounts is generally governed by something like SPAN. You see that the hedge fund you recently joined maintains both a retail account and a professional trading account. You have been asked by a hedge fund for your advice on which type of account they should open:
If your hedge fund is trying to minimize the amount of capital in the margin accounts, in which account will the low-volatility assets be kept and why?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:00
Following is a list of various costs incurred in producing replacement automobile parts. with respect to the production and sale of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs. 1. oil used in manufacturing equipment 2. plastic 3. property taxes, $165,000 per year on factory building and equipment 4. salary of plant manager 5. cost of labor for hourly workers 6. packaging 7. factory cleaning costs, $6,000 per month 8. metal 9. rent on warehouse, $10,000 per month plus $25 per square foot of storage used 10. property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 11. straight-line depreciation on the production equipment 12. hourly wages of machine operators 13. electricity costs, $0.20 per kilowatt-hour 14. computer chip (purchased from a vendor) 15. pension cost, $1.00 per employee hour on the job
Answers: 3
question
Business, 22.06.2019 13:30
If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work?
Answers: 2
question
Business, 22.06.2019 16:00
Which plan offers a tax-free education?
Answers: 1
question
Business, 22.06.2019 18:00
Rosie and her brother michael decided recently to purchase an rv together. they both want to use the rv to take their families camping. the price of the rv was $10,000. since michael expects to use the rv 60% of the time and rosie 40% of the time, michael contributed $6,000 and rosie contributed $4,000. their ownership percentage equals their contribution percentage. which type of property titling should they use to reflect their ownership interest?
Answers: 1
You know the right answer?
Federal Reserve Board Regulation T (Reg. T)1 allows an initial margin on stock purchases of 50% rega...
Questions
question
Mathematics, 15.07.2021 23:40
question
Chemistry, 15.07.2021 23:40