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3 years ago

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

Business

2 answers:

MrRissso [65]3 years ago

8 0

A mutual funds only invest in blue-chip stocks

Alex777 [14]3 years ago

8 0

Answer:

c.Mutual funds hold a diversified portfolio of stocks.

Explanation:

Investing in shares of a single company can be very risky, as if that company suddenly breaks down, you could lose all of your invested assets. Ideally, invest in the stocks of several companies as this minimizes the risk of total loss of your capital. This is exactly what mutual funds do by aggregating the capital of various investors and investing it in stocks of several companies that are bullish on the financial market.

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What might you find out an about people who are described as credit risks

ludmilkaskok [199]

That they are not good choices to go with

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3 years ago

_____is the function of coordinating the diverse activities and human resources of a company to produce a smooth-running operati

Alchen [17]

Answer:

b) directing

Explanation:

The four main management functions are:

planning
organizing
directing
controlling

Originally, there were 5 main management functions developed by Henri Fayol (staffing was the fifth one) in the early 20th century. Fayol's management theory is still applied today, although it has been modified and updated.

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3 years ago

n seeking a balance between the opportunity for profit and the potential for loss, a financial manager is dealing with the conce

shepuryov [24]

Answer:

The correct answer is risk-return.

Explanation:

The relationship between profitability and risk can be stated in other terms. When faced with a high level of uncertainty about the outcome of an investment, one might expect higher remuneration to outweigh the high risk.

For example, if you lend money to someone with a timely repayment history of your loans, you could accept a low interest rate in return. However, if you lend money to a manifestly unreliable person, you are likely to demand higher returns to compensate for the increased risk of default. This is often called the risk-benefit balance.

8 0

3 years ago

Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta

hjlf

Answer:

The earnings per share figure is $1.89

Explanation:

Sales of $602,000

Costs of $256,000

Depreciation expense of $62,500

Interest expense of $29,500

Tax rate of 40 percent.

-> Profit Before Tax = Sales - Cost - Depreciation Expense - Interest expense

= $602,000 - $256,000 - $62,500 - $29,500

= $254,000

Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400

Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000

= $1.89

7 0

3 years ago

Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

valentinak56 [21]

Answer:

a. What are the total equivalent units for direct materials?

152,400 units

b. What are the total equivalent units for conversion costs?

129,700 units

c. What is the cost per equivalent unit for direct materials?

Total Direct Materials Cost

$495,300

Cost per equivalent unit = Total Direct Materials Cost / total equivalent units for direct materials

$3.25

d. What is the cost per equivalent unit for conversion costs?

Total conversion costs

$324,250

Cost per equivalent unit = Total conversion costs / total equivalent units for conversion

$2.50

e. What is the total cost of units completed and transferred out?

$615,250

f. What is the total cost of units remaining in ending WIP?

$204,300

Explanation:

a. What are the total equivalent units for direct materials?

Completed and Transferred (107,000 × 100%) = 107,000 units

Ending Work In Process (45,400 × 100%) = 45,400 units

Total equivalent units = 152,400 units

b. What are the total equivalent units for conversion costs?

Completed and Transferred (107,000 × 100%) = 107,000 units

Ending Work In Process (45,400 × 50%) = 22,700 units

Total equivalent units = 129,700 units

c. What is the cost per equivalent unit for direct materials?

Total Direct Materials Cost

Beginning Work In Process $53,200

Added $442,100

Total Direct Materials $495,300

Cost per equivalent unit = Total Direct Materials Cost / total equivalent units for direct materials

= $495,300/ 152,400 units

= $3.25

d. What is the cost per equivalent unit for conversion costs?

Total conversion costs

Beginning Work In Process $19,600

Added $304,650

Total conversion costs $324,250

Cost per equivalent unit = Total conversion costs / total equivalent units for conversion

=$324,250/ 129,700 units

= $2.50

e. What is the total cost of units completed and transferred out?

Raw Materials ( $3.25 × 107000) = $347,750

Conversion($2.50 × 107000) = $267,500

Total $615,250

f. What is the total cost of units remaining in ending WIP?

Raw Materials ( $3.25 × 45,400) = $147,550

Conversion($2.50 × 22,700) = $56,750

Total $204,300

5 0

3 years ago