Why are mutual funds generally perceived to be less risky than holding a market basket of individual
Question:
Why are mutual funds generally perceived to be less risky than holding a market basket of individual stocks?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
Mutual funds are generally perceived to be less risky than holding a market basket of individual stocks due to several reasons 1 Diversification Mutua...View the full answer
Answered By
SUMAN DINDA
I LIKE TO TEACH STUDENTS. SO, I START MYSELF AS A PRIVATE TUTOR. I TEACH STUDENTS OF DIFFERENT CLASSES. I HAVE ALSO DONE BACHELOR OF EDUCATION DEGREE(B.ED). DURING THIS COURSE I HAD TO TEACH IN A SCHOOL. SO I HAVE A GOOD EXPERIENCE IN TEACHING.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial System Of The Economy Principles Of Money And Banking
ISBN: 9780765622464
5th Edition
Authors: Maureen Burton,Bruce Brown
Question Posted:
Students also viewed these Business questions
-
You are contemplating putting part of your investment funds into a Money Market Mutual Fund (MMF). Recently MMFs have had trouble retaining funds. It was our understanding due to the nature of the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Draw a graph of the market for euros in terms of U.S. dollars. Then show and explain the effect of each of the following changes: a. There is an increase in demand for U.S. exports. b. Stock markets...
-
On December 1, 2011, Lavender Manufacturing Company (a corporation) purchased another company's assets, including a patent. The patent was used in Lavender's manufacturing operations; $49,500 was...
-
1. Which of the following is an example of moral hazard? a. Reckless drivers are the ones most likely to buy automobile insurance. b. Retail stores located in high-crime areas tend to buy theft...
-
An enterprising student has set up an internship clearinghouse for business students. Each student who uses the service fills out a form and lists up to 10 companies that he or she would like to have...
-
The following is the adjusted trial balance of Flappy Health, Inc., for August 31,2010. Requirement 1. Journalize the closing entries at August 31. Happy Health, Inc. Adjusted Trial Balance August...
-
On January 1, 2012, Valuation Allowance for Trading Investments had a zero balance. On December 31, 2012, the cost of the trading securities portfolio was $ 105,800 and the fair value was $101,600....
-
The capital structure of a company during the whole of this current financial year has been as follows: Ordinary Shares $1 fully paid - market value $800,000 6% debentures ($100 par value) $212,000...
-
What are institutional investors, and what impact do they have on stock markets? What is program trading?
-
To which market index would you refer to see how well the stock market is performing? Why? Why do you think the movements of the Dow and the S&P 500 are highly correlated?
-
Why are unusual or infrequent items disclosed before tax?
-
(6 marks) Dene a procedure deep list - remove that takes two inputs: 3 test procedure and a List.As output, it produces a List that is a copy of the input List with all of the elements for which the...
-
Statistics show that entrepreneurship is a less common choice for women than men. In your opinion, when is entrepreneurship the right choice for women? If you know any women entrepreneurs, or are one...
-
List the differences among civil law, common law, and theocratic law. Explain why it is important to understand these laws, specifically how they relate to different countries and the institutions...
-
Determine the derivative using basic differentiation laws: h(m) - em - me +e+ 5-In(11m) h' (m) - sin (a)
-
Answer the following questions based on the chart on the next page. Identify your selected aircraft by case number (CC-AR6-1, CC-AR6-2, etc.). Note that there is more than one good answer for each...
-
It seems logical that the number of days per year that an employee is tardy is at least somewhat related to the employees job satisfaction. Suppose 10 employees are asked to record how satisfied they...
-
According during to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,088 in 2018. Consider the population of "last-minute" filers who mail...
-
Read the article, Nonprofit Governance and Accountability: Broadening the Theoretical Perspective by Tracey M. Coule. (See Articles.) Explore the authors Typology of Nonprofit Governance and...
-
If you were a nonprofit CEO, how would you describe the ideal board for which to work?
-
If you were the chair of a nonprofit board, how would you describe the ideal relationship between the board and the CEO from your perspective?
-
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $74,000;...
-
Maximizing an individual's utility subject to a budget constraint(10 points) Kevin's happiness depends only on two things: how many bags of M&M's he has (denoted by x) and how many bowls of chili he...
-
A country is experiencing unemployment of 4% and inflation of 10%. The central bank uses contractionary monetary policy to reduce inflation. Explain how this might happen, what policy might be used,...
Study smarter with the SolutionInn App