The main advantage of mutual funds is that theyprovidea. a return insured by the government.b. an easy way to hold a diversified portfolio.c. an asset that is widely used as the medium ofexchange.d. a way to avoid fluctuations in stock and bondprices.

Q: As supplier of funds, households invest by purchasing cars or houses. Is it true or false?

A: Individuals or firms who save or make investments in the financial market are the suppliers of funds…

Q: Discuss the uses of Mutual Funds. a) Diversification of Investments

A: Diversification refers to putting together a portfolio of shares from various asset groups. It…

Q: Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds…

A: Mutual funds are pool of money created by voluntary contribution by people, this money is often…

Q: How can we Include Risk in Investment Evaluation?

A: Risk is included in the investment evaluation  by using the following  methods like Beta, Standard…

Q: At what point in one’s life is it safest to try a risky investment? Closer to or further from…

A: From the investment point of view, the life of an individual can be divided into four phases -…

Q: How investors handle risk is an important topic that usually only economists observe.

A: Basically, risk the executives happens when an investor or fund manager investigates and endeavors…

Q: Question 4 What does it mean to be a ‘rational investor’ and how do fintech solutions encourage us…

A: "Rational" means a hypothetical person who reasonably computes the expenses and advantages of each…

Q: What is the difference between shares of stocks from mutual funds?

A: A stock in a market is called equity and it is described as security that depicts the possession of…

Q: What is risk financial management ?

A: In finance, risk management is both quantitative and qualitative.

Q: Is common stocks or bonds best for a high risk firm? Why?

A: Stock: When corporates trades in equity securities, Stock market is the place where the investors…

Q: f investin

A: Answer why! because, Investing in crypto assets is risky but conjointly doubtless very profitable.…

Q: How does diversification benefit against risk in your portfolio?

A:

Q: How important is CFO in a rural bank? What he can do that others cannot?

A: As a top executive, the chief financial officer is in charge of a company's financial operations.…

Q: 02.04 What is Stock Anyway? Investing basics chart

A: Stock refers to the share of an individual in the total investment in a company. It is also known as…

Q: At what point in one’s life is it safest to try a risky investment?  Closer to or further from…

A: Its safest to try risky investment when you are further from retirement.

Q: Savings is a stock variable True/False

A: # The part of income which is not consumed is refferd to be as savings. Saving can be zero if whole…

Q: What is shares of stocks?

A: A capital market is a marketplace where investors and sellers exchange financial instruments such as…

Q: Explain what is the risk premium?

A: A risk premium is the return in excess of the risk-free rate of return an investment is predicted to…

Q: Give your opinion on the current situation of stock market right now. Would it be profitable to…

A: The securities market could be a share market, but besides shares of corporations, different…

Q: How can the Philippine Stock Exchange entice an average Filipino citizen to invest in securities?…

A: Savings and investments are important in the economy. For the economy to function smoothly, there is…

Q: insurance creates wealth

A: Insurance is a financial instrument that protects an individual from unwarranted losses due to a…

Q: What is an investment pool?

A: Investment pools are the funds collected from individual investors or public entities. These funds…

Q: How can an inaccurate estimate of assets have serious consequences?

A: Answer - Estimates of assets - It is approximate value of assets of original value of assets which…

Q: Why do most investors hold diversified portfolios?

A: "Don't put all your eggs in one basket" This adage very well captures all the essence of…

Q: Assume that you are a wealthy investor, which one do you prefer mutual funds or hedge funds? Why?

A: Mutual fund and multifaceted investments are overseen portfolios worked from pooled assets fully…

Q: An investor owns $6,000 of Adobe Systems stock, $5,000 of Dow Chemical, and $5,000 of Office Depot.…

A: Stock Portfolio weights Adobe system stock 0.375 Dow chemical 0.3125 Office Depot 0.3125

Q: Young people with little wealth should not invest money in risky assets such as the stock market,…

A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…

Q: The benefit of diversification when constructing a portfolio is that it can reduce what?

A: Diversification(D) is a strategy to minimize the risk by combining variety of investments(I) within…

Q: Explain how shares of stocks differ from mutual funds.

A: A stock (also referred to as equity) is a security reflecting the ownership of a fraction of a…

Q: The demanders of funds participate in the financial market to earn profit. * True or False??

A: Individuals and businesses who save money and make financial investments are the suppliers of funds…

Q: What are the functions of stock exchanges in the economy? Please explain?

A: Stock exchange: It means a common marketplace for the trading of stocks between buyer and seller.

Q: 4. Which ETF is least risky? 5. Which ETF is least correlated with ETF A? 6. Calculate James'…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: When do you release a retentiong guarantee/bond?

A: A retention bond is a kind of performance bond that protects the customer in the scenario when the…

Q: Which of the following represents the risk of investment in order from lowest to highest? O A.…

A: Investment refers to the dedication of an asset to attain a rise in value over a period of time.…

Q: One of the goals of mutual funds is to achieve superior diversification compared to what individual…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: a) Explain the reason(s) why bond ratings and interest rate spreads on bonds differ. Which measure…

A: The credit quality or creditworthiness of government-issued bonds or corporate-issued bonds is…

Q: Investors have different preferences with regards to the risk: they can be risk averse, risk neutral…

A: The risk averse people are those person who always prefers lower risk among the different levels of…

Q: Answer the attached question

A: With rise in stock prices, it is only profitable till shares are sold.

Q: O Why the financial manager should maximize their wealth?

A: Profit maximization is a point where the marginal revenue(MR) is equal to marginal cost (MC)…

Q: Briefly describe and explain the following investments terms        a) savings  c) Mutual funds  e)…

A: Investments can be either economic or financial in nature. Purchases of goods and services required…

Q: How much liability does stockholder assume?

A: Shareholder: Any person, company, or organization holding stock in a specific company.

Q: As an investor, how do you diversify against risk?

A: Diversification means allocating funds to various financial instruments that have different risk…

Q: 1. In terms of the Markowitz portfolio model, explain how an investor identifies his / her optimal…

A: MARKOWITZ'S MODERN PORTFOLIO THEORY   In 1952, Harry Markowitz presented an essay on "Modern…