Use the Following Information to Answer the Question(s)below

question 41

Multiple Choice

Use the following information to answer the question(s) below.
John Galt is a mutual fund manager at Atlas Asset Management.He can generate an alpha of 2% a year up to $500 million of invested capital.After that amount,his skills are spread too thin,so he cannot add value and his alpha is zero for all investments over $500 million.Atlas Asset Management charges a fee of 0.80% on the total amount of money under management.Assume that there are always investors looking for positive alpha investments and no investor would invest in a fund with a negative alpha.Assume that the fund is in equilibrium,meaning that no investor either takes out money or wishes to invest new money into the fund.
-The alpha that investors in Galt's fund expect to receive is closest to:

• A)-.80%.
• B)0.0%.
• C)0.80%.
• D)1.8%.

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Definitions:

Collection Cost

Expenses incurred in the process of collecting payments from customers, including billing, processing, and legal actions.

Supply Chain Surplus

The total value generated by all participants in the supply chain, often measured as the difference between customer value and the supply chain cost.

Logistics Driver

Critical factors that influence the efficiency and effectiveness of a company's logistics and supply chain operations.

Sourcing

The process of finding, evaluating, and engaging suppliers of goods and services to fulfill business requirements.