FREE Trial

Discuss diversification among mutual funds. Describe some strategies that make diversification more effective. What is a mutual fund supermarket?

Discuss diversification among mutual funds. Describe some strategies that make diversification more effective. What is a mutual fund supermarket?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
  • Tutor Answer

By investing in more than one mutual fund you can diversify across several …View the full answer


answer-question
Related Book For  answer-question
Personal Finance

Personal Finance

ISBN: 978-0132994347

5th edition

Authors: Jeff Madura

See More Books
Posted Date: October 13, 2015 05:52:45
See More Questions

Students also viewed these Corporate Finance questions

Q:
What is a mutual funds net asset value (NAV)? How is the NAV calculated and reported?
A:
The mutual funds net asset value NAV is the market value of a......
Q:
List and briefly describe the different types of stock mutual funds.
A:
Growth funds focus on stocks that have potential for above average growth Capital appreciation funds......
Q:
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of 60 stock mutual fund shares ($ 40 per share) and long term capital gain distributions of 45 stock mutual...
A:
Ronnie will have to pay taxes in the amount of 630 Tax on divid......
Q:
Each of the following passages may be plausibly criticized by some who conclude that it contains a fallacy, but each may be defended by some who deny that the argument is fallacious. Discuss the...
A:
The argument in this chapter is an illustration of the equivocation fallacy which happens when a ter......
Q:
Briefly discuss the requirements for a redemption to qualify as a not essentially equivalent redemption.
A:
A corporate distribution in exchange for stock qualifies as a not essentially equiv......
Q:
The Association of Women in Government established an Educational Foundation to raise money to support scholarship and other education initiatives. The Educational Foundation is a private...
A:
a Journal Entries 1 Supplies inventory Asset 1 900 Accounts payable Liability 1 900 To record purchase of supplies on account Supplies expense Expense......
Q:
For each of the following lists of premises, derive the indicated conclusion and complete the justification. For double negation, avoid the occurrence of triple tildes.
A:
Click to View...
Q:
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are...
A:
ASHAD COMPANY Process Cost Summary Weighted Average Method For Month Ended July 31 Costs Charged to......
Q:
How can we best build affiliation at work? Do you believe it is appropriate for people with a higher status in the workplace to connect at a personal level or is it just for people of your same...
A:
Building affiliation at work is crucial for fostering a positive and productive work environment Here are some strategies to achieve it 1 Open Communication Encourage open and honest communication amo......
Q:
Imagine that a country can produce just two things: goods and services. Assume that over a given period it could produce any of the following combinations: Units of goods 0 10 20 30 40 50 60 70 80 90...
A:
a See the inner blue line in Diagram 1 below b 5 units of services Producing another 10 units of goo......
Q:
List three reasons for investing in mutual funds.
A:
First investors like mutual funds because of the small amount of money ne......
Q:
What is an open end mutual fund? What types of companies usually manage open end funds? Describe how these funds work on a day to day basis.
A:
Open end mutual funds sell shares directly to investors and purchase those shares back whenever inve......
Q:
Several years ago, Ethan purchased the former parsonage of St. James Church to use as a personal residence. To date, Ethan has not received any ad valorem property tax bills from either the city or...
A:
a The parsonage probably was not listed on the property tax rolls......
Q:
What is genetic drift? What is a founder? Are these important in large populations or in small ones? How are these phenomena important when we create national parks and preserves to protect...
A:
Genetic drift is a mechanism of evolution that occurs when random chance events cause changes in the frequency of alleles different forms of a gene within a population over time These events can inclu......
Q:
Differences in flower color, shape, or fragrance are listed as being potential biological reproductive barriers. Do you think they would matter at all in a wind pollinated species? If a plant species...
A:
In wind pollinated species the primary mode of pollination is not reliant on attracting specific pollinators such as insects but rather on the release......
Q:
A patient taking levodopa and over-the-counter megavitamins might experience. a. A cure from Parkinson disease. b. The return of Parkinson symptoms. c. Improved health and well-being. d. A resistance...
A:
b The return of Parkinson s symptoms Levodopa is a medication commonly used to treat the symptoms of......
Q:
Find the symmetries of the states associated with the second overtone of the bending mode of CO 2 .
A:
The second overtone of the bending mode of CO2 involves higher energy vibrational states that can be understood in the context of molecular symmetry I......
Q:
Muscle relaxants would be used in which circumstances? a. To treat spasticity related to spinal cord injury. b. To treat spasticity that contributes to locomotion, upright position, or increase in...
A:
Muscle relaxants would be used in the following circumstances a To treat spasticity related to spina......
Q:
Refer to the Simon Company information in Exercises 13-6 and 13-8. Compare the companys long-term risk and capital structure positions at the end of 2018 and 2017 by computing these ratios: (1) Debt...
A:
1 Debt and equity ratios 2018 2017 Total liabilities and debt ratio 129 900 98 500 228 400 43 7 75 2......
Q:
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job C D E...
A:
Processing order us......
Q:
Assume the following conditions. The last time the FOMC met, it decided to raise interest rates. At that time economic growth was very strong, and inflation was relatively high. Since the last...
A:
The Fed would likely not change the target It probably rai......
Q:
In periods when home prices declined substantially, some homeowners blamed the Fed. In other periods when home prices increased, homeowners gave credit to the Fed. How can the Fed have such a large...
A:
The Fed influences interest rates which affects the cost of borr......
Q:
The Fed uses a targeted federal funds rate when implementing monetary policy. However, the Fed's main purpose in its monetary policy is typically to have an impact on the aggregate demand for...
A:
Even though the federal funds rate is the interest rate that is targeted b......
Q:
Write structural formulas that correspond to the following abbreviated structures, and show the correct number of hydrogens on each carbon: a. b. C. d. g- h.
A:
a CH 3 CH 2......
Q:
a) What are the operations that correspond to the query expressed using this SQL statement? SELECT Supplier, Project FROM Part_needs, Parts_inventory WHERE Quantity 10 b) What is the output of this...
A:
This is similar to Example 13 a Since two databases are......
Q:
Identify the operations on polynomials that correspond to the following operations on vectors. Give the resulting polynomial. (a) (b) (c) (d) 302 121 121 430 02020| 12-21 4371
A:
a x 2 2x 1 2 3x 2 2 5x 2 2......
Q:
Patagonia founder and owner Yvon Chouinard argued that meaningful work depends on what one does, in terms of daily tasks, but also on the larger issues that a company stands for" He writes....
A:
PATAGONIA CASE 1 1 Determine whether your company pays above market at market or below market rates......
Q:
For a = (1 + 5)/2 and = (1 - 5)/2, show that k=0 k = - and that k=0 ||= a2.
A:
1 5 2 15 2 Sin......
Q:
What would you do, as director of food and beverage, to get the guest satisfaction scores back into the clear or green zones? The Sunnyvale Hotel is operated by a major hotel management corporation....
A:
The director of food and beverage restarted the core philosophy of having the guest leave hap......
Q:
Develop a recommendation with regards to accepting or rejecting the offer.
A:
The current policy of ordering 600 kits every three months is not optimal Students can calculate a......
Q:
Nosker Inc. had the following transactions pertaining to investments in common stock . Jan. 1 Purchased 2,500 shares of Escalante Corporation common stock (5%) for $152,000 cash. July 1 Received a...
A:
Jan 1 Stock Investments 152 000 Cash 152 000 Jul......
Q:
At annual sales of $900,000, the Ebo product has the following unit sales price and costs: Selling price per unit $20 Prime cost Manufacturing overhead: Variable Fixed Selling and administrative...
A:
To calculate the breakeven point in units for the Eb......
Q:
Tobias Eaden started a sole proprietorship named Sky High Ads. A customers message can be displayed on an airplane banner across the city. The following are Sky High Ads business activities during...
A:
Nov 1 Analysis Assets increase Equity increases Journal entry analysis Debit the Cash account for 200 000 Debit the Aircraft Equipment account for 50 000 Credit the Tobias Eaden Capital account for 25......
Q:
1. Does this grant present Dr. Ray with an ethical dilemma(s) in any way? 2. Derive at least one hypothesis for each research question listed above. Provide a sound rationale or theoretical...
A:
1 Yes Senator Shot wants research to support his point of view so that it will support his proposed legislation which will be received positively by his constituents Recall from Chapter 4 that one obl......
Q:
1. Is the sampling method adequate? Is the attitude-measuring scale sound? Explain. 2. Using the computerized database with a statistical software package, calculate the means of the three automotive...
A:
1 The sampling frame was from a respected commercial organization A thirty two percent response rate is respectable However it would be desirable to have a sample size larger than the final sample siz......
Q:
The line L passes through the points A(1, 3) and B(19, 19). Find an equation of L in the form ax + by + c = 0. where a, b and c are integers.
A:
To find the equation of line L passing through points A 1 3 and B 19 19 we......
Q:
The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting Company as of November 30 follow. Determine the amount of social security tax to be withheld from...
A:
To determine the amount of social security tax to be withheld from each employee s gross pay for December you need to follow these steps Calculate eac......
Q:
An investor is considering the purchase of shares in either AA plc or BB plc whose latest accounts are summarised below. Both companies carry on similar manufacturing activities with similar selling...
A:
Report to the Investor a Appraisal of the Results and State of Each Business BB plc BB plc s latest financial statements indicate a mixed financial performance The company s freehold property is value......
Q:
Study the following financial statements of two companies and then answer the questions which follow. Both companies are stores selling carpets and other floor coverings; each company has a single...
A:
a Financial Ratios i Gross profit as of revenue R Ltd 900 000 2 000 000 100 45 T Ltd 400 000 1 400 000 100 28 57 ii Net profit as of revenue R Ltd 60......
Q:
Construct the confidence interval that could be used to test the claim in Exercise 1. What feature of the confidence interval leads to the same conclusion from Exercise 1? Data From Exercise 1: In...
A:
To construct a confidence interval to test the claim that money in a large denomination is less like......
Q:
Refer to the accompanying Minitab-generated scatterplot. a. Examine the pattern of all 10 points and subjectively determine whether there appears to be a correlation between x and y. b. After...
A:
a Looking at the scatterplot there appears to be a positive correlation between x and y The points t......
Q:
Perform the indicated operations. 3y(x 4y) 2
A:
To perform the indicated operations we need to expand the expressi......
Q:
Government is advised to tax goods whose demand curves are inelastic if the goal is to raise tax revenues. If the goal is to discourage consumption, then it ought to tax goods whose demand curves are...
A:
If you want to raise revenues then tax a basic good that p......
Q:
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
A:
Q1 A Broadcasting is the largest source of revenue for Liverpool FC In 2018 2019 the club earned approximately 299 3 million euros from broadcasting more than triple than in 2010 2011 The second bigge......
Q:
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
A:
Click to View...
Q:
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...
A:
Answer 12 A A bond s coupon rate sometimes abbreviated simply to coupon isn t affected by its price B However the coupon rate influences the bond s price by influencing the bond s competitiveness and......
Q:
"Your lumber company has bought a machine that automatically cuts lumber. the seller of the machine claims that the machine cuts lumber to a mean length of 7 feet (84 inches) with a standard...
A:
It is given that lumber mean length inches The standard deviation Number of boards 40 The......
Q:
The velocity of a skydiver whose parachute is still closed can be modeled by assuming that the air resistance is proportional to the velocity. From Newton's second law of motion the relationship...
A:
Script file syms m g c v t disp Answer to Part a vs dsolve m g c v......
Q:
1. Explain how SQL engine works 2. Given the tables R,S and T: a) Write the algorithm to execute this query. b) Translate the query to relational algebra c) Find optimization plan for the query...
A:
1 Explain how SQL engine works An SQL engine also known as a Database Management System DBMS is responsible for executing SQL queries and managing databases efficiently Here s a simplified overview of......
Q:
Determine whether the following symbolized arguments are valid or invalid by constructing a truth table for each.
A:
Click to View...
Q:
During its first year of operations, Sitwell Corporation had the following transactions pertaining to its common stock . Jan. 10 Issued 80,000 shares for cash at $6 per share. Mar. 1 Issued 5,000...
A:
a Jan 10 Cash 80 000 X 6 480 000 Common Stock 80 000 X 3 240 000 Paid in Capital in Excess of Par x......
Q:
Tarzan Health Center has no debt but is considering two plans to add leverage. Plan A - issue P200,000 bonds Plan B - issue P300,000 bonds The proceeds from both proposals shall be used to return the...
A:
1 Market Value of Equity under Plan A Under Plan A THC issues 200 000 worth of bonds This means that the value of the common equity should be the same......
Q:
Nick Jones, a 30-year-old single taxpayer, is involved in three partnerships; one as a general partner and two as a limited partner (Schedule K-1s provided in Canvas Files). Nick has no other source...
A:
ANSWER Infrmtin but Frm 1040 X mended U S Individul Inme Tx Return inluding reent udtes relted frms nd instrutins n hw t file Use Frm 1040 X t file n......
Q:
A single mispriced asset has an alpha = 4.0%, a beta = 1.0 and unsystematic risk (variance) of 16.0%. The market risk premium is 5.0% and the market's Sharpe Ratio is 0.5.In constructing an optimal...
A:
To determine the proportion of your investment to allocate to the mispriced asset you can use the co......
Q:
During your internship with the currency trading desk of an investment bank, you are provided with the information below and required to complete items a) to e) below. Currency * Spot rate 160.90/...
A:
a The 90 day annualised forward premium for the against is calculated by taking the difference between the 90 day forward rate and the spot rate divid......
Q:
Which of the following is true regarding normal quiet expiration of air? Select one: a. It is a passive process that depends on the recoil of elasticfibers that were stretched during inspiration. b....
A:
Normal quiet expiration is a passive process that does not require any muscle contraction for a......
Q:
As of May 19, 2022, the FASB updated its agenda item Accounting for and Disclosure of Digital Assets. With the use of digital currency increasing, proponents argue that inconsistent accounting...
A:
The Financial Accounting Standards Board FASB has been actively discussing the need for improved acc......
Q:
Enter McKinsey & Companys Web site and find the page The Role of Education in AI (and Vice Versa), (...
A:
The article The Role of Education in AI and Vice Versa by McKinsey Company discusses the expanding u......
Q:
Go to itunes.apple.com/us/app/public-transit-appmoovit/id498477945?mt=8. Compare Moovit operations to the operation of INRIX.
A:
Moovit and INRIX are both prominent players in the public transit industry but they operate in sligh......
Q:
Peter Chan has just acquired three houses by obtaining three mortgage loans. They all mature in 15 years and can be repaid without penalty any time before maturity. The amounts owed and the annual...
A:
Certainly Let s calculate the monthly payments total interest paid and total cost for each of the three mortgage loans Mortgage Loan A Balance Due 520......
Q:
Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 40% of the dollar value of the portfolio, and stock M will account for the other 60%....
A:
Certainly let s calculate everything step by step a Year 2015 rp 2015 Weight of L Return of L Weight......
Q:
A company receives numerous cheques in the mail every day. Which of the following demonstrates a weak internal control procedure for this company? Select one: a. The accounting department uses the...
A:
A company receives numerous checks in the mail every day the following would be a weak......
Q:
Write a paper by answer the following question: Should Recycling Be Mandatory?
A:
Thesis Statement It feels good and healthy to walk in a clean environment characterized by clean and fresh air Our happiness is rejuvenated when we come across lovely trees and flowers either in a nor......
Essentials Of Marketing Research 1st Edition - ISBN: 0030243564 - Free Book