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Sholpan [36]
3 years ago
13

What are mutual funds? Explain the associated risks.

Business
1 answer:
ipn [44]3 years ago
5 0

Answer:

A mutual fund is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.

Risks:

The level of risk in a mutual fund depends on what it invests in. Stocks are generally riskier than bonds, so an equity fund tends to be riskier than a fixed income fund. Plus some specialty mutual funds focus on certain kinds of investments, such as emerging markets, to try to earn a higher return. These kinds of funds also tend to have a greater risk of a larger drop in value—yet the greater the risk, the greater the reward (or potential for higher returns).

Risks of Investing in Equity Mutual Funds The below are a few key risks involved with investing in equity funds: Volatility Risk: An equity fund invests primarily in the shares of companies listed on stock exchanges. Thus, the value of an equity fund is directly related to the performance of companies, in stocks of which it has invested.

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Net income reported on the income statement for the current year was $350,000. Depreciation recorded on plant assets was $26,000
Sonbull [250]

Answer:

$357,500

Explanation:

Cash flow from operating activities on the statement of cash flows:

= Net income + Depreciation Expense - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expense - Decrease in accounts payable

= $350,000 + $26,000 - $3,000 - $5,000 + $2,500 - $13,000

= $357,500

Therefore, the net cash flow from operating activities is $357,500.

6 0
3 years ago
What is known as the act of giving "mental connection to a given task" or unit of information
disa [49]

Answer:

The correct answer is letter "B": attention.

Explanation:

Attention is the mental activity by which individuals focus their attention on a given subject they are dealing with. By doing this, people leave behind any other situation around to concentrate only on the task they are given. This scenario takes place in complicated exercises that push people's knowledge to the limit or when the exercise is of interest or important for the individual.

7 0
3 years ago
You have a loan outstanding. It requires making three annual payments at the end of the next three years of $1000 each. Your ban
Shalnov [3]

Answer:

$2722.82

Explanation:

Present value of loan = $1,000 * [(1+5%)^3 - 1]/ 5%

= $1,000 * (1.157625 - 1) / 0.05

= $1,000 * 0.157625/ 0.05

= $1,000 * 3.1525

= $3152.50

The present value of loan before bank restructuring is $3152.

Future value = Cash flow / (1+r)^n

= $3152 / (1+0.05)^3

= $3152 / (1.05)^3

= $3152 / 1.157625

= $2722.82

Therefore, the final payment required to pay to make indifferent for both payment is $2722.82

6 0
3 years ago
What is the purpose of an inspection report ​
Reptile [31]
<h2>Answer:</h2><h3>The purpose of inspection reports is to document the inspection scope, observation, and findings</h3><h3>of inspections conducted by the NRC. </h3>

<h2>Explanation:</h2><h3>The NRC performs inspections to oversee the commercial nuclear industry to determine </h3><h3>whether its requirements are being met by licensees and their contractors.</h3>
5 0
3 years ago
An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical produ
mixas84 [53]

Answer: Option B and C

         

Explanation: In simple words, oligopoly refers to the market structure in which there are few firms operating at a huge level and selling products that are close but not absolute substitutes of each other.

     The high level of investment and too much of legal formalities makes it difficult to entry in such industries. Firms in such industries produce identical goods thus they do not compete in the amaretto with respect to price.

the firms operate their market on the basis of non price factors such as advertisements but still are mutually interdependent on each other as a minor decrease in price of other can deregulate the demand in the whole industry. Automobile sector is one the primary examples of oligopoly.

8 0
3 years ago
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