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3 years ago

Exchange Traded Funds (ETFs) are:

Business

1 answer:

aalyn [17]3 years ago

8 0

Answer:

(c) II and III

Explanation:

Exchange-Traded Funds (ETFs) are registered under the Investment Company Act of 1940 as open-end management companies, which is regulated by the Securities and Exchange Commission (SEC) under the Securities Act of 1933. ETF’s are nothing but funds that are traded on the stock market.

Funds are the money or the capital that is collected from people by any company for investment. The company that manages these funds is called Asset Management Company.

The Asset Management Company appoints a fund manager whose main role is to invest the fund in the stock market. The profit that is generated from this investment is then distributed among the investors or people from whom the fund has been collected. But to manage these fund Asset Management Company charges some fees to investors which are called as Expense Ratio.

In the stock market, there are many indices like Sensex, Nifty, Nifty Bank, etc. which gives us the information about the stock market. ETF is a fund that replicates these indices.

Exchange-traded funds are named because

a) They trade on public exchanges (so they can be accessed at market prices just like common stock)

b) They are funds.

So, the correct option is (c).

You might be interested in

What are the two main forces that underlie the globalization of markets and production?

blagie [28]

The two forces are:
1. Falling barriers to trade and investments: Many countries of the world now allow their countries to engage in trade with other countries, this has led to increase in globalization of markets and production.
2.Technological innovations: technology has made so many things possible in the business world today.The whole world has been linked up by internet and this makes it easier for a company to market its products to the whole world.

8 0

4 years ago

Joan grows pumpkins. If Joan plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she gets 500 pumpki

valkas [14]

Answer: Option (B) is correct.

Explanation:

Correct option: Decreasing marginal product.

Marginal product is the change in the level of output, when there will be an extra input employed in the production of a certain commodity.

So, Marginal Product = $\frac{change\ in\ Q}{Change\ in\ I}$

Where,

Q = Output

I = Input

Marginal product of 1st bag = 500

Marginal product of 2nd bag = $\frac{800-500}{2-1}$ = 300

Marginal product of 3rd bag = $\frac{900-800}{3-2}$ = 100

∴ From the above calculations, we can seen that as we employed one more bag of seeds as a result marginal product goes on diminishing.

Hence, Joan's production function exhibits decreasing marginal product.

3 0

4 years ago

Pick the correct statements regarding cell references.

seropon [69]

where are the statements?

6 0

3 years ago

Read 2 more answers

Let’s see how fees can hurt your investment strategy. Let’s assume that your mutual fund grows at an average rate of 5% per year

elena-14-01-66 [18.8K]

Answer:

We notice that the more the fees increase for a constant rate of return, the number of years it takes to double on the investment also increases. For example;

a). 15.6 years

b). 20 years

c). 28 years

Explanation:

The rule of 70 is a formula that can be used to estimate the number of years it will take an investment to double up.The formula is expressed as;

Number of years to double=70/Annual rate of return

a). Given;

Annual rate of return per unit of investment=5%

Annual fees per unit of investment=0.5%

Net rate of return=Annual rate of return-Annual fees=(5%-0.5%)=4.5%

Replacing;

Number of years to double=70/Net rate of return

=70/4.5=15.555 to nearest tenth=15.6 years

b). Given;

Annual rate of return per unit of investment=5%

Annual fees per unit of investment=1.5%

Net rate of return=Annual rate of return-Annual fees=(5%-1.5%)=3.5%

Replacing;

Number of years to double=70/Net rate of return

=70/3.5=20.0 to nearest tenth=20 years

c). Given

Annual rate of return per unit of investment=5%

Annual fees per unit of investment=2.5%

Net rate of return=Annual rate of return-Annual fees=(5%-2.5%)=2.5%

Replacing;

Number of years to double=70/Net rate of return

=70/2.5=28.0 to nearest tenth=28 years

We notice that the more the fees increase for a constant rate of return, the number of years it takes to double on the investment also increases

6 0

4 years ago

Price inflation:_______.

expeople1 [14]

Answer:

c. courages investment by increasing the uncertainty about future returns

Explanation:

Inflation refers to the increase in the price level of the goods

The price inflation reflects that there is a rise in the price of the goods and services over a particular period of time lets say for one year. It can arise when the raw material cost during the process of production increased that push the price in upward

It also increased the uncertainty with respect to the future returns through investment

Hence, the correct option is c.

5 0

3 years ago