Answer:
a)
Explanation:
Mutual funds are investment companies called AMC( asset management companies ) that gather funds from public by issuing units. These funds are then invested in financial securities and financial instruments likes bonds and shares. Mutual funds are managed by financial experts and are less risky for common public than direct investment in stock market.
Answer:
Yes, it is worth $4 to insure a Personal Digital Assistant
Explanation:
Eery action has its benefits and disadvantage. The benefits of sending your cousins a Personal Digital Assistant mail is of great benefit to him. Therefore, if the chances of losing it to damage or lost is two percent, whereas with four percent, the damage or lost is covered and insured. Then the later becomes inevitable.
Evaluating it further it is better to lose additional charges for a set purpose, than to lose its capita l values .
Answer:
1. Yes, overshooting is consistent with PPP. Investors forecast the expected exchange rate based on the theory of PPP. When there is some change in the market, the investors know the exchange rate will change to equate relative prices in the long run. This is why we observe overshooting in the short run. The investors incorporate this information into their short-run forecasts.
2. Exchange rates are volatile in the short run. The theory's implication that there is exchange rate overshooting (in response to permanent shocks) is one explanation for short-run volatility in
exchange rates.
Answer:
Summarizing; Knowledge worker
Explanation:
Summarizing: It is a financial activity that involve collection of financial data and information to be presented in a specified format as per accounting standard to make it easier to understand and analyse.
Knowledge worker: These are professionals whose job is to innovate, discovering new ideas, analysing information, etc. Thinking is the job requirement for these professionals. Few examples of knowledge worker are Scientists, programmer, architect, accountant, etc. Knowledge worker are different from other worker as they know how to get the task done with easier technique and knowledge.
Answer:
B) She has been notified by her employer that due to corporate downsizing her position is being eliminated.
Equities carry a high risk and if her high paying job is at risk, she will probably need to reduce her portfolio's risk.
Explanation:
the other options are wrong because:
A) Equities are rebounding slowly after a 2-year slump. <u>⇒ if this is true, then she should be happy with her current portfolio since 80% of it are equities.</u>
C) The father of her children has established trust funds for each of them in the amount of $50,000 each. <u>⇒ if this is true, then she should be happy with her current portfolio since equities carry a higher risk but can also yield much higher returns. She should be OK with the high risk because her children will be covered by the trust fund. </u>
D) She will be remarrying a person of considerable wealth next month. <u>⇒ if this is true, then she should be happy with her current portfolio since equities carry a higher risk but can also yield much higher returns. She should be OK with the high risk because she will marry a wealthy man, so the risk shouldn't be a a problem. </u>
