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3 years ago

What are the fundamental differences between mutual funds and hedge funds?

2 answers:

6 0

The correct answers are:

<span>A.)mutual funds are more strictly regulated than hedge funds
</span><span>D.)mutual funds collect money from investors while hedge funds from companies

Mutual funds are investment programs that are funded by shareholders while hedge funds are invested funds from borrowed money. In terms of an investment program, mutual funds are more effective.</span>

prisoha [69]3 years ago

5 0

Answer:

Explanation: The Difference Between Mutual Funds And Hedge Funds. Both mutual funds and hedge funds are managed portfolios. ... Unlike mutual funds, hedge funds take speculative positions in derivatives, and they short sell stocks. With increased leverage comes increased risk, but also the chance to gain when the market is falling.

Hedge funds and mutual funds are both “pooled” vehicles, but there are more differences than similarities. For instance, a mutual fund is registered with the SEC, and can be sold to an unlimited number of investors. Most hedge funds are not registered and can only be sold to carefully defined sophisticated investors.

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A book store had a $780,000 in sales revenue in 2000 and $590,000 in 2011. Assuming a constant EXPONENTIAL annual rate of decrea

Tamiku [17]

Answer:

The predicted sales revenue for 2017=$501,334.008

Explanation:

If something reduces at a constant rate over a specified period of time, then it can be represented using an exponential function as follows;

y=a(1-r)^x, or y=ab^x

where;

y=final sales revenue after the reduction

a=initial sales revenue before the reduction

1-b=reduction factor

x=time interval

In our case;

y=$590,000

a=$780,000

1-r=b=unknown

x=2011-2000=12 years

replacing;

590,000=780,000.b^12

b^11=590,000/780,000=0.756

b=0.756^(1/12)

b=0.977

r=1-0.977=0.023

Determine predicted sales revenue;

y=ab^x

y=sales revenue in 2017

a=sales revenue in 2011=$590,000

b=0.977

x=7 years

replacing;

y=590,000(0.977)^7

y=$501,334.008

The predicted sales revenue for 2017=$501,334.008

6 0

3 years ago

Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weig

masha68 [24]

Answer:

(a) Cost of inventory sold using FIFO method = $179,280

(b) Cost of inventory sold using LIFO method = $188,700

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers is now provided as follows:

Units of inventory sold = Units available for sale - Ending physical inventory units = 45 – 14 = 31

(a) first-in, first-out (FIFO) method

Under FIFO, inventory purchased first is sold first. Therefore, we have:

Cost of inventory sold using FIFO = 12 units at $5,400 each from Jan. 1 + 18 units at $6,000 each from Aug. 7 Purchase + 1 unit at $6,480 from Dec. 11 Purchase = (12 * $5,400) + (18 * $6,000) + (1 * $6,480) = $64,800 + $108,000 + $6,480 = $179,280

(b) last-in, first-out (LIFO) method

Under LIFO, inventory purchased last is sold first. Therefore, we have:

Cost of inventory sold using LIFO = 15 unit at $6,480 each from Dec. 11 Purchase + 16 units at $6,000 each from Aug. 7 Purchase = (15 * $6,480) + (16 * $6,000) = $97,200 + $96,000 = $188,700

(c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).

Under the weighted average cost method, the cost of goods available for sale is divided by the number of units available for sale to obtain average cost per unit. This is then used to multiply the total units sold to obtain the cost of inventory sold as follows:

Weighted average cost per unit = Cost of goods available for sale / Units available for sale = $270,000 / 45 = $6,000

Cost of inventory sold using weighted average cost method = Units of inventory sold * Weighted average cost per unit = 31 * $6,000 = $186,000

Download pdf

6 0

3 years ago

Question #2: Why should we simplify expressions in algebra Using race

rusak2 [61]

Answer:

Why should we simplify expressions in algebra Using race?

Learning how to simplify an expression is the most important step in understanding and mastering algebra. Simplification of expressions is a handy mathematics skill because it allows us to change complex or awkward expressions into simpler and compact forms.

xXxAnimexXx

Have a great day!

4 0

3 years ago

Read 2 more answers

Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Ident

neonofarm [45]

Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.

d. The Company's liabilities will increase by $30,000.

Explanation:

From the question, Foster, Inc., bought a truck by paying $5,000 and then borrowed the remaining $30,000 that was required to complete the transaction.

Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000

6 0

3 years ago

The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is:__________. a. expens

seraphim [82]

Answer:

C. Productive

Explanation:

3 0

3 years ago