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 1985, you received a
Ilya [14]
After getting a B.S in computer programming in 1985, and then missing some time in between jobs, you will need to make a new resume. Since you already have worked several jobs, and two with major companies, you will want to list those on the top of the resume. The most appropriate strategy for dealing with your resume and the irregular work history will not be very complicated. You will want to include all of the dates of employment and any recognition/awards you may have received with those jobs. Next, you will want to explain in the application letter that you were not in the workforce because of your childcare responsibilities. You may also want to include that the children are now in school, and you can focus on your career. 
8 0
3 years ago
Which of the following is NOT an essential element of a contract for the purchase of a one- to four-family residential resale pr
Lyrx [107]

Answer:

<u>a) Competent parties</u>

Explanation:

This is not an essential element of such a contract because basically we would not expect a minor to be involved in a transaction of a four-family residential resale property.

Remember, competent parties contract requirements are that the two parties in the sale contract should be persons legally and mentally capable of entering into contracts that is enforceable by law.

5 0
3 years ago
Factors affecting pricing decision
xxMikexx [17]
- the main consumers

- the supply available

- society

- the value of money

- inflation

please vote my answer branliest! Thanks .
8 0
3 years ago
ABC Tax Planning Service started business in January 2018. The company rented an office for $5,400 per month starting from Janua
Sholpan [36]

Answer:

balance in the Prepaid Rent account as of April 30 is $10800

Explanation:

given data

rent office =  $5,400 per month

rent paid = 6 month i.e January 1 to June 30

to find out

balance in the Prepaid Rent account as of April 30

solution

we know here that Period Expired till April 30 = 4 months ( January 1 to April 30)

and

so Period Balance = 2 Months  ( May 1 to June 30 )

so Prepaid Rent is = Balance Period × Rent per month

Prepaid Rent = 2  × 5,400

Prepaid Rent = $10800

so balance in the Prepaid Rent account as of April 30 is $10800

6 0
3 years ago
On March 15, a fire destroyed Blossom Company's entire retail inventory. The inventory on hand as of January 1 totaled $5300000.
Svet_ta [14]

Answer:

The value of inventory destroyed=$4,082,000

Explanation:

<em>The value of the inventory destroyed is the difference between the the cost of the total goods available for sale and the cost of goods sold</em>

The value of inventory destroyed = cost of goods available for sale - value of inventory sold

Cost of goods sold = 3540,000 - (20%×  3540,000)= 2,832,000

The cost of goods available for dale = opening inventory + purchases + freight charges

$5300000 + $1432000 +  $182000 = 6,914,000

The value of inventory destroyed = 6,914,000 - 2,832,000 = 4082000

The value of inventory destroyed=$4,082,000

7 0
3 years ago
Other questions:
  • Classify the assumptions according to whether or not each item is an assumption made under perfect competition (also known as pu
    5·1 answer
  • While specialization allows firms to produce many goods and services at lower production and transaction costs than individuals
    10·1 answer
  • Which of the following is a way developing nations are trying to raise living standards? A. Return to traditional ways of farmin
    11·2 answers
  • When is a budget considered to be balanced??
    5·1 answer
  • Glossamer Inc., a company owned by George and Alex, faces huge debts and is eventually shut down due to bankruptcy. The company'
    9·1 answer
  • You are to make monthly deposits of $700 into a retirement account that pays an APR of 10.2 percent compounded monthly. If your
    5·1 answer
  • According to the classical economists, if the quantity of money that people wanted to save was greater than the amount that peop
    14·1 answer
  • In your own words, what is a franchise?
    14·1 answer
  • Everything Looks Like a Nail, Inc is a manufacturing company that produces hammers. The company faces a number of fixed and vari
    13·1 answer
  • If the world price for a good exceeds the before-trade domestic price for a good, then that country must have.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!