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3 years ago

How is a mutual fund different from an index fund

1 answer:

3 0

A mutual fund can in fact be an index fund. However, the vast majority of mutual funds aren't similar to index funds. Most mutual funds have an objective that is different than that of an index fund. Most mutual funds do not rebalance as often as an index fund. A mutual fund often is more diversified than a pure index fund.

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Suppose you bought a bond with an annual coupon of 7 percent one year ago for $1,010. The bond sells for $985 today. a. Assuming

butalik [34]

Answer:

(a) $45

(b) 4.45%

Explanation:

a) Dollar return:

= Selling Price - Buying Price + Coupon

= $985 - $1,010 + $70

= $45

b) Rate of return:

= Dollar return ÷ Buy price

= 45 ÷ 1,010

= 4.45%

c) Based on Fisher relation,

(1 + Nominal rate) = (1 + Real rate) × (1 + Inflation)

(1 + 4.45%) = (1 + Real rate) × (1 + 3%)

Therefore,

Real rate = 1.41%

7 0

3 years ago

Supposed that you decide to borrow $40,000 for a new car you can select one of the following loans each requiring regular monthl

vaieri [72.5K]

I would select the 5 year plan on the loan

6 0

4 years ago

Teltos Inc. is seeking ways to motivate its "creative types." Which of thefollowing ways can be considered by the firm to encour

viktelen [127]

Answer:B

Explanation:

Being less tolerant of aberrations

8 0

3 years ago

Which of the following statements is true about the niche strategy?

prohojiy [21]

Answer: In regards with niche strategy the following statement is true: Companies that adopt a niche strategy have only a small number of customers.

Niche is a term that stands for commodities, services, or inclination that charms a small, differentiated part of the demography.

Therefore, if an organization chooses to adopt niche strategy then they are targeting a small and differentiated part of the consumer database or population.

Therefore, the correct option in this case is (d)

5 0

3 years ago

Control over cash disbursents is generally more effective when

Misha Larkins [42]

The control over cash disbursements is generally more effective when payments are made by check.

<h3>What is a cash disbursements?</h3>

Also known as cash payment, its refers to the outflow of cash paid in exchange for the provision of goods or services

Hence, the control over cash disbursements is generally more effective when payments are made by check.

Therefore, the Option D is correct.

Missing option a) all bills are paid in cash. b) disbursements are made by the accounts payable subsidiary clerk. c) all purchases are made on credit. d) payments are made by check.