1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Feliz [49]
3 years ago
10

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

Business
1 answer:
Stolb23 [73]3 years ago
3 0
If the fund is mutual then there are more people that are invested so if it crashes it is less likely to take you down with it
You might be interested in
Other things held constant, which of the following actions would increase the amount of cash on a companys balance sheet? Select
Leokris [45]

Answer:

Correct option is (c)

Explanation:

When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.

Payment of dividend also decreases cash from balance sheet.

When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.

When company gives more time to its debtors, receipt of cash is delayed thereby not increasing cash in balance sheet.

Purchase of new equipment will reduce cash balance.

So issue of new shares increase cash balance in balance sheet.

7 0
3 years ago
Piperrockelle is my fav persen
Klio2033 [76]
Who is that? I can’t say I’ve heard that name before.
3 0
3 years ago
A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% ba
scZoUnD [109]

Answer:

Answer:

Dividend (D) = 4% x $100 = $4

Current market price (Po) = $18

Flotation cost (FC) = $1.50

Tax rate (T) = 40% = 0.40

Kp =   <u> D </u>

       Po-FC

Kp =   <u>  $4 </u>

        $18-$1.50

Kp = <u>$4 </u>

      $16.5

Kp = 0.24 = 24%

Explanation:

Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.

3 0
3 years ago
prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed
Serhud [2]

Answer:

Savings in fixed costs= 30,800

Explanation:

Giving the following information:

Prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed expenses of $92,000. By dropping the product, Sprockets increased its company-wide yearly net income by $10,800.

Loss= 120,000 - 48,000 - 92,000= -20,000

By dropping the product:

Savings in fixed costs= 20,000 + 10,800= 30,800

3 0
3 years ago
Management science stresses the use of rational, science-based techniques and mathematical models to improve _____.
ANEK [815]

Answer:

Decision making and strategic planning

Explanation:

Management science refers to a science that helps handling the activities of an organization to accomplish established goals with the use of scientific methods. In order to reach their objectives, companies need to plan the strategies they are going to use and make sound decisions based on careful research and analysis of data to solve problems. For this, companies tend to use different techniques and mathematical models that help them to have a better understanding of the company situation and discover the right path to be successful. According to this, the answer is that management science stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning.

5 0
3 years ago
Other questions:
  • White Tiger Electronics produces CD players using an automated assembly line process. The standard cost of CD players is ​$148 p
    6·1 answer
  • Suppose you invest 60% of your portfolio in campbell soup and 40% in boeing. the expected dollar return on your campbell soup st
    7·1 answer
  • For most young people, working full-time and going to school are substitutes: You tend to do one or the other. When it’s tough t
    7·1 answer
  • "A drink costs 2 dollars. A taco costs 3 dollars. Given the number of each, compute total cost and assign totalCost with the res
    12·1 answer
  • Was the industrial "revolution" inevitable, or could americans have maintained a more agricultural economy?
    9·1 answer
  • The _____ measures the dollar value at current market prices of all final goods and services produced annually by factors of pro
    9·1 answer
  • Which of the following is NOT one of the managerial considerations in determining how to compete successfully? How should a comp
    7·1 answer
  • Jackson Manufacturing Company had a beginning inventory of $23,000. During the year, the company recorded inventory purchases of
    5·1 answer
  • ou were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equi
    6·1 answer
  • The researcher wants to investigate whether carpet makes a difference in the mean bacterial concentration in air. the null and a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!