All categories

3 years ago

A managed mutual fund:

Business

1 answer:

Ilia_Sergeevich [38]3 years ago

7 0

Answer:

b) Has a higher expense ratio than an index fund

Explanation:

A mutual fund is a diversified investment tool. The fund is a collection of different types of stocks that form a single investment asset. It is a basket of stock trading as a single asset. Purchasing one unit of a mutual fund is equivalent to purchasing several portions of each stock that make up the mutual fund.

A professional manager manages the mutual fund. He or she carefully selects the stocks that go into the basket forming the mutual fund. The manager charges a professional fee, which is usually a percentage of the investment. Due to this fee, a mutual fund is relatively expensive as compared to an index fund that does not require the input of a manager.

You might be interested in

In the classic downward-sloping demand curve, as price increases, the demand for the product or service

vesna_86 [32]

The demand for a product or service would likely decrease as price increases as far as the classic downward-sloping demand curve is concerned. In addition, this specific type of demand curve characterises increase of consumer demand as the price significantly falls.

5 0

3 years ago

When some firms enter a perfectly competitive industry in which firms are earning an economic profit, the short-run industry sup

inn [45]

Answer: Supply curve - Increases rightwards

Market Price - Falls

Economic Profit - Decreases

Explanation: Perfect Competition market structure is with large number of buyers & sellers , homogeneous products & uniform prices , perfect information and free entry and exit.

'Free Entry and Exit' implies - no firm earns super normal (economic) profits or abnormal losses in long run. When firms are earning economic profits in short run, new firms enter (because of free entry) & the industry supply increase reducing price , which further reduces the super normal profits to normal profits in long run. Similarly - Abnormal losses make firms exit (freely), reduce supply & increase price , hence reducing abnormal losses & resuming normal profits.

7 0

3 years ago

On december 1, milton company borrowed $480,000, at 8% annual interest, from the tennessee national bank. interest is paid when

Vlad [161]

Debit Interest Expense [$480,000 x 8% x 360/360] = $38,400.00
Credit Interest Payable = $38,400.00

5 0

3 years ago

Read 2 more answers

Zena Technology sells arc computer printers for $54 per unit. Unit product costs are:

Marina CMI [18]

Answer:

Minimum selling price is $ 37

Explanation:

Computation of minimum selling price

Direct materials per unit $ 15

Direct labour per unit - existing $ 19

Additional for modification $ 3

Direct Labor per unit $ 22

Variable cost per unit $ 37

Since the Company has sufficient idle capacity to produce the additional order, no incremental fixed manufacturing capacity is considered.

The minimum selling price should be one which covers the variable costs ( modified for labor increase)

5 0

3 years ago

If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15

Juli2301 [7.4K]

Opportunity cost is computed as the difference between the present worth and the cost. present worth is the product of $12 and 10 hours * 15 weeks while the cost includes the tuition cost, books cost and the board cost. The cost has a total of $2,000 + $400 + $4000 equal to $6400. The difference is equal to $4600

4 0

3 years ago