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
Ede4ka [16]
3 years ago
6

Question 4 (20 marks)

Business
1 answer:
Darya [45]3 years ago
8 0

Answer:

Explanation:

(A) The pros of its actions are:

1. An exchange traded fund can give access to a group of market segments or sectors, which can be monitored or traced.

2. Exchange traded funds are of low cost.

3. An exchange traded fund comprises baskets of stocks and securities.

4. It gives exposure to various market styles and different classes of equities.

5. Exchange traded funds trade at a cost that is not static. A price that is updated all day long.

6. The Hong Kong government can trade options and futures, just like a stock.

(B) The major risks of buying exchange traded funds are:

1. The risks involved in trading

Since an exchange traded fund can be bought and sold like a stock, investment gain/return can be at risk. The costs of regular trading can exceed the benefit of purchasing exchange traded funds at low fees.

2. Taxation risk

Since exchange traded funds come with great tax efficiency, the risk of having to pay tax on your exchange traded fund is present.

3. Risks involved in portfolio

There are various specialty exchange traded funds. An individual or a country's portfolio is hereby susceptible to

- business risk

- liquidity risk

- political risk

- market risk, etcetera.

Each country fund the trader acquires, comes with its own liquidity and political risks because it's stability largely depends on the stability of the country's economy or political leadership!

You might be interested in
In 1981, 16 percent of wives earned more than their husbands. what was the percentage as of 2005?
AnnZ [28]
Given that <span>In 1981, 16 percent of wives earned more than their husbands.

It is reported that in 2005, about 26% of wives earned more than their husbands.</span>
7 0
3 years ago
Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding shar
bogdanovich [222]

Answer:

c. $524,000 and $250,000

Explanation:

See the attached picture for detailed explanation.

3 0
3 years ago
Read 2 more answers
I help back so please help me. also i have uploaded many questions today if you want a lot of points...
7nadin3 [17]
I think the 2nd option is the answer.
6 0
3 years ago
Read 2 more answers
Which of the following is true for project manager that work in a specific industry?
astra-53 [7]

Answer: A. they have expertise in a focused technical topic

Explanation:

6 0
3 years ago
Suppose the manager agrees to pay each employee a​ $50 bonus if they meet a certain goal. on a typical​ saturday, the​ oil-chang
Sergeeva-Olga [200]

Answer:

Incomplete question

First aspect of the question is typed below.

The shape of the distribution of the time required to get an oil change at a 20-minute oil-change facility

is unknown. However, records indicate that the mean time is 2l.2-minutes, and the standard deviation 3.5 minutes.

Explanation:

Employees bonus $50

35 oil changes between 10:00 am to 12:00pm

n = 35

10% changes

So, the z - score can be calculated using

z-score = InvNorm(0.10)

z-score = -1.28

So, given that,

Standard deviation is 3.5minutes

σ = 3.5 minutes

Mean time is 21.2 minutes

μx = 21.2 minutes

Then,

σx = σ / √n

σx = 3.5 / √35

σx = 0.5916 minutes

Then, Z score can be written as

Z = (x - μx) / σx

-1.28 =  (x - 21.2) / 0.5916

Cross multiply

-1.28 × 0.5916 = x - 21.2

-0.7573 = x - 21.2

x = 21.2 - 0.7573

x = 20.443 minutes

There is a 10% chance of being at or below a mean oil-change time of 20.44 minutes

5 0
3 years ago
Other questions:
  • Some entrepreneurs Invent Innovative
    7·1 answer
  • A study finds that during​ blizzards, online sales are highly associated with the number of snow plows on the​ road; the more​ p
    8·1 answer
  • The embargo created an artificial drop in the supply of oil. how would a natural shortage differ from an embargo situation
    11·1 answer
  • Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
    7·1 answer
  • Getler Inc.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecaste
    14·1 answer
  • Toby and Keith are planning to create and jointly own a company that will license their patented technology solely for royalties
    12·1 answer
  • Using the information provided about marketing and advertising law, determine which of the following would be a violation of thi
    15·1 answer
  • The demand curve has what kind of slope?
    13·1 answer
  • Lincoln Park Co. has a bond outstanding with a coupon rate of 6.04 percent and semiannual payments. The yield to maturity is 6.1
    6·1 answer
  • Financial statement analysis: Multiple Choice is primarily used to identify account values that meet the normal standards. is li
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!