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Mrrafil [7]
3 years ago
9

Mutual funds Group of answer choices provide diversification. Shareholders assume all of the risk associated with the mutual fun

d. provide diversification. Government insurance eliminates the risk of mutual fund shareholders. do not provide diversification. Shareholders assume all of the risk associated with the mutual fund do not provide diversification. Government insurance eliminates the risk of mutual fund shareholders.
Business
1 answer:
posledela3 years ago
5 0

Answer:

The correct answer is letter "A": provide diversification. Shareholders assume all of the risk associated with the mutual fund.

Explanation:

Mutual funds are pools of assets that allow small investors to have a <em>diversified portfolio</em> which reduces risks in their investments. Mutual funds are typically managed by professionals who charge a high fee for their services which reduces the investors' net profit.

Even if mutual funds are managed by professionals, it does not guarantee investors will end up with earnings and, in front of losses,<em> investors assume the whole risk.</em>

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Charra [1.4K]

Answer:

$60 million

Explanation:

The computation of the value of operations after the repurchase is shown below:-

Total corporate value = Value of operation + marketable securities

(5 × $15 million) = Value of operation + $15  million

$75 million = Value of operation + $15  million

Value of operation = $75 million - $15  million

= $60 million

We simply applied the above formula so that the firm's value of operations after the repurchase could come

5 0
2 years ago
List three positive benefits and three possible negative results of using credit.
mixer [17]

Positives:

Credit card rewards.

Fraud protection.

Travel benefits

Negatives:

Interest charges.

Late fees.

Potential for credit damage.

4 0
3 years ago
What is the relationship between the gross public debt and the net public​ debt?
timofeeve [1]
The gross debt is the total amount of debt the gov. has issued . the difference is that the net debt does not include debt owned by the gov. to itself
3 0
3 years ago
The following costs were incurred in May:
algol13

Answer:

d. $55,600

Explanation:

Direct Labor = $34,000

Manufacturing Overhead Cost = $21,600

Conversion Cost = Direct Labor + Manufacturing Overhead Cost

Conversion Cost = $34,000 + $21,600

Conversion Cost = $55,600

So, the conversion costs during the month totaled $55,600.

3 0
3 years ago
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at t
Whitepunk [10]

The question is incomplete. Here is the complete question.

Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________. A. $150 B. $50 C. $100 D. $200

Answer:

$50

Explanation:

Caribou Gold mining corporation is expected to make a dividend payment of $6 next year

Dividend are expected to decline at a rate of 3%

= 3/100

= 0.03

The risk free rate of return is 5%

= 5/100

= 0.05

The expected return on the market portfolio is 13%

= 13/100

= 0.13

The beta is 0.5

The first step is to calculate the expected rate of return

= 0.05+0.5(0.13-0.05)

= 0.05+0.5(0.08)

= 0.05+0.04

= 0.09

Therefore, the intrinsic value of the stock using the constant growth DDM model can be calculated as follows

Vo= 6/(0.09+0.03)

Vo= 6/0.12

Vo= $50

Hence the intrinsic value of the stock is $50

8 0
2 years ago
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