B. underperform those who hold investments for the long term and trade infrequently.
Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in price underperform those who hold investments for the long term and trade infrequently.
<h3>Why do investors underperform?</h3>
Market timing is the first explanation. Individual investors attempt to decide whether to invest in stocks and when to withdraw funds from them. Despite the fact that we are aware of the market's unpredictability, investors frequently invest during bull markets and exit during down markets. This is seen in the money flows into and out of mutual funds during stock market extremes. Your return will be negatively impacted if you buy high and sell low.
The fees that investors spend are the second factor contributing to their poor market performance. The majority of investors are unaware of their costs and don't care. They fail to understand how a few dollars here and there could possibly make a difference. They believe the fees and charges don't exist since they can't see them.
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This is tough to answer in 3-5 sentences, and tends to also be a heavy identifier of your possible political leanings. You'll have to apologize if some of mine leak out in the response, but this is a question we debate hotly more frequently than every 4 years.
In general, international trade can help increase the GDP and overall profits for US-based corporations. However, if all we do is export, and we don't import, other countries don't look favorably upon that and may heavily tax our goods to counter this.
I believe we do need to be thoughtful about the amounts and kinds of international trade that we engage in. For example, farming is always a hotly debated issue for international trade, in part because farmers in other countries with a dramatically lower cost of living OR farmers in countries with a favorable currency rate (exchange from their currency to our dollars gives them an advantage) can undercut our farmers here in the US, many of whom are already struggling.
There are also those who are worried that when we import produce from countries that have not outlawed pesticides we know are carcinogenic, for instance, this creates not only a disadvantage for US farmers, but also for consumers who may be concerned about health issues.
As another example of this, many countries outlawed import of US beef during the Mad Cow Epidemic. We in turn also placed bans on importing beef from the UK.
These are examples of why it's important to be thoughtful about trade, but there are certainly many others, including decline in production jobs within the US that have left cities like Detroit a ghost town (this was formerly the hub of our automotive industry production).
Answer:
Jimmy must pay federal income taxes for the $500 earned in dividends during last year = $500 x 28% = $140
Since interest earned on federal securities are not taxed by state or local governments, there is no state tax liability.
Jimmy's total taxes due from dividends earned = $140
Answer:
Benefits-received principle
Explanation:
This principle says that the people who benefit most from government assistance programs should be the one to pay for them. Regressive taxes represent a higher portion of money for low income families, with the idea that it is okay because the government provides more services for low income families.
Answer:
1 . b
2. 84.03 euro
3. 135.28 euros
4. 177.22 dollars
5. 0.77
6. 0.154
Explanation:
1. Dollar depreciated
2. 1 Euro = 1.19 dollars
So therefore
1 dollar = 1 euro/1.19
So 100 dollars = 100 * (1/1.19) = 84.03 Euro.
3. A = p * (1 + (r/n))^(nt)
Where p = principal = 84.03
A = accrued amount after maturity
r = rate = 10%
n = number of compounding = yearly = 1
t = time of maturity = 5
So therefore:
A = 84.03 (1 +0.1)^5
A = 135.28 Euro
4. Convert 135.28 euros to dollars after 5 years
Since 1 Euro = 1.31 dollars
So therefore 135.28Euro will be 1358.28 * 1.31 = 177.22 dollars
5 - (final value/initial value) - 1 )
Where final value = 177.22
Initial value = 100
So therefore [ (177.22/100) - 1] = 0.77
6 - average annual return = sum of earning after maturity / time of maturity
So therefore : 0.77/ 5 = 0.154
