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3 years ago

Why do some people consider mutual funds a more convenient investment than stocks or bonds?

Business

2 answers:

makvit [3.9K]3 years ago

5 0

Because they do not have to personally handle their investments

In mutual funds, a group of investors decided to hire a third party to handle all of their investments in their behalf. In return, the third party would receive small percentage from the capital gains made by the investors.

For investors who do not want to constantly manage their investments, mutual fund is a very convenient option of investment since they can diversify their investments without having to conduct a market research by themselves.

shepuryov [24]3 years ago

4 0

<span>Some people consider mutual funds a more convenient investment than stocks or bonds because </span>owning an individual stock would carry more risk than a mutual fund. The type of risk is unsystematic. Unsystematic risk means that by owning just one stock, you would be carrying company risk that may not apply to other companies in the same sector of the market.

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Acme Enterprises began the new year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this

Sedaia [141]

Answer:

Acme's current balance of accounts payable is $6000

Explanation:

The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.

The closing balance can thus be calculated as:

Closing balance = Opening balance + Credit purchases - Payment to Accounts payable

Closing balance = 3000 + 4000 - 1000

Closing balance = $6000

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3 years ago

Imagine an influential new study shows that eating eggs drastically reduces the risk

sweet-ann [11.9K]

The correct answer would be d

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2 years ago

Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this pr

d1i1m1o1n [39]

An inner tube for a swimming pool would be in high demand during the summer months, and in incredibly low demand in the winter months.

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4 years ago

Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an

Ilia_Sergeevich [38]

Answer:

A. Project A

B. Project A has lowest Standard Deviation

C. Project D

Explanation:

The higher the range, the more risky the project is. Based on the table, project A has the smallest range, and therefore is the least risky based on range.

The standard deviation is not scale-free, i.e. it is not adjusted for the level of returns. Hence, a project that has the same distribution of returns, but a higher average return, will have a higher standard deviation. But the project is not any more risky. Hence, the standard deviation might not be an appropriate measure of risk.

The Coefficient of Variation (CV) is calculated as follows:

CV = Standard deviation / expected return

Applying this formula, the coefficient of variation for each project is:

Project A: 2.9% / 12.0% = 0.242

Project B: 3.2% / 12.5% = 0.256

Project C: 3.5% / 13.0% = 0.269

Project D: 3.0% / 12.8% = 0.23 4

Based on the coefficient of variation, project D has the lowest coefficient. It means that the project has the lowest risk per unit of return generated, and thus is the best project and should be chosen.

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3 years ago

Which of the following is a major difference between a budget constraint and production possibilities frontier?

horrorfan [7]

Answer:

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

So, the PPF exhibits diminishing return. The slope of the PPF is different at different points. this makes the PPF a curve

the budget constraint is a straight line that shows the various combinations of goods a consumer can consume given her income. the budget constraint is a straight line because the slope is constant at each point on the curve

Also, the slope of the budget constraint is the relative prices of the two goods

8 0

3 years ago