The fund that has the lowest average expense ratio from the given options is an Indexed fund.
<h3>Why are expense ratios for Indexed funds so low?</h3>
Index funds are funds that invest on a particular index such as the S&P 500 Index which follows the 500 companies on the S&P.
The way these funds work is by investing on a certain index entirely and then leaving the investment to run on its won based on the returns of the index that was invested in.
Because these funds just follow an index, they do not need people to monitor them and make analysis that will lead to higher returns for investors.
As a result of this, the overhead attached as a result of wages for analysts is reduced. With the total expenses being reduced, so also will the average expense ratio.
In conclusion, the fund that generally has the lowest average expense ratio is the indexed find.
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Answer:
Change in Net worth= $133.62
Explanation:
The two lease options require that the leasee ( the tenant) commit himself to pay a series of equal amount of rent installment at the different time period in the future.
These series of equal periodic cash flows occurring in the future are called annuities.
To have a meaningful comparison, the two annuities should be compared based on their present values. So we compute the present value of the two using the formula below:
Present Value (PV) =( A × (1- (1+r)^(-n))/r
Option 1:Current lease
PV = 500 × 1-(1+0.05)^(12)
= 500 × 8.863251636
= $4,431.62
Option 2: New Offer
This will be done in two steps:
PV of lease in year 3
PV =700 × (1-(1+0.05)^(-9))
= 700 × 7.107821676
=4,975.47
PV of lease in year 0
PV = FV × (1+r)^(-3)
=4,975.47 × 0.8638
=$4,298.00
My net worth would change by the amount of the difference between the two PV of the two annuities:
Difference in PV = $4,431.62-$4,298.00
Change in Net worth= $133.62
Answer:
The correct words, that fills the gaps are: driving force, competitive
Explanation:
Even when it is important to judge what stage of growth an industry is in, it is better to identify the factors that cause fundamental adjustments in the industry and competition. Industry conditions and competition change because forces are in motion that create incentives or pressures for change. The dominant forces are known as driving forces, because they have the greatest influence on the kind of changes that will take place in the structures and environment of the industry.
Answer:
C) Save money
Explanation:
If you value security then you would be more concerned and charged to save money.
Money provides security. One would have enough money to live on and this reduces worries. It is being stable and also having enough money that one can use to take care of certain emergencies and future financial plans.
Through this one would not have to break the bank during the case of an emergency.
Answer:
b. are willing to buy at various prices.
Explanation:
The demand of good in economics is clearly the goods that people want and are ready to pay different prices for such goods.
The goods are valuable to different people depending upon their different needs and shall be of different satisfaction to different people.
People will pay for the good according to the capacity and need.
The demand of goods does not mean the number of goods to be bought when can be received free of cost. This is because that might include the un-necessary wants of a person, but not the real demand.
