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Sholpan [36]
2 years ago
13

What are mutual funds? Explain the associated risks.

Business
1 answer:
ipn [44]2 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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Source: Tommy Stubbington and Ben​ Edwards, open double quoteU.K. to Repay First World War ​Bonds,close double quote Wall Street
xxMikexx [17]

Answer:

Follows are the solution to this question:

Explanation:

Its console shall be coordinated effort mutual funds which do not grow at all, and in every year they create a corrected degree of interest, that's why Its bond paying a fixed rate of the coupon but not maturing.

\text{Consolation price} =\frac{\text{Set amount of coupon}}{\text{Return Rate}}

                            = \frac{35}{2.5\%} \\\\ = \frac{35\times 100}{2.5} \\\\   = \frac{35\times 1000}{25} \\\\  = \frac{7\times 1000}{5} \\\\  = 7\times 200 \\\\= 1400

It's the price that the government needs to offer shareholders.

5 0
3 years ago
Which standard specifies requirements for the selection, care, and maintenance of open-circuit scba and combination scba/sar use
sweet-ann [11.9K]
Roblox is the answer
5 0
3 years ago
Jordan's Ice Creams is strategically located near a university. After realizing that most of its customers, who are mostly stude
olga2289 [7]

Answer:

D) Focused differentiation strategy.

Explanation:

A focus differentiation strategy is meant to satisfy very different and specific needs of their customers. It is not just about making a different product that customers may like, it is about making very specific products that appeal to specific clients.

Jordan's Ice Cream is offering hundreds of customized products, each customized product appealing to a small number of clients. In this case, making unique ice cream combinations is not that expensive, but usually this type of strategy works well in very luxurious products.

7 0
3 years ago
Read 2 more answers
The city of​ Belgrade, Serbia, is contemplating building a second airport to relieve congestion at the main airport and is consi
sertanlavr [38]

Answer:

Alternatives                                          Airport at X Airport at Y

Buy land at X                                                 6             -14

Buy land at Y                                               -21             12

Buy land at X and Y                               -15                 -2      

Do nothing                                                 0              0

probability                                                   0.55              0.45

Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3

Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15

Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15

Payoff for doing nothing = 0

The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.

4 0
3 years ago
Which of the following actions is likely to have the highest initialcost in terms of its impact on other parts of the organizati
avanturin [10]

Answer:

Replace existing equipment with newer, more efficient equipment. Although this option entails substantial up-front investment, you’re sure that you can more than make up the difference in lower production costs.

Explanation:

The action that is likely to have the highest initial cost in terms of its impact on other parts of the organization is to replace existing equipment with newer, more efficient equipment. Although this option entails substantial up-front investment, you’re sure that you can more than make up the difference in lower production costs. This because buying new equipment will require a big investment from the company at the beginning to cover its costs but this will later generate more productivity and lower production costs which will compensate the initial high cost.

The other options are not right because buying slightly lower-grade materials, including hardwood, aluminum, vinyl, and nylon can decrease the cost at the beginning but the company can have problems with the quality of the products which could be really costly. Also, lay off a portion of your workforce and then try to motivate everyone who’s left to work harder and this option also means selecting future hires from a lower-skill labor pool and paying lower wages will decrease labor costs at the beginning but can require a big investment later with the costs of the process to hire new people, compensations to the employees that were laid off and can also result on low quality job and productivity from lower-skill labor.

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