The fact that mutual funds provide small investors with a diverse portfolio and experienced management is one of their appealing qualities.so statement is true.
<h3>What draws small investors to mutual funds?</h3>
Investors have access to a greater variety of investments through mutual funds than they could on their own. By pooling your funds, you may take advantage of economies of scale. The monthly contributions improve the investor's assets. Funds are more liquid because they are often less volatile.
The ability to diversify and thereby distribute risk over a number of investments is one of the reasons mutual funds are so well-liked by investors. People are drawn to mutual funds because they provide an opportunity for typical individuals to invest in professionally managed funds.
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Answer:
-1.0
Explanation:
Diversification in a portfolio refers to spreading investments in such a way so as to minimize risk.
The correlation coefficient r between two securities signifies how return from one security is related with another security. For example, two securities of the same sector may move in the same direction or positively correlated as in if price of one rises, the price of other rises too maybe not by the same margin.
In case of a negative correlation, the security returns move in opposite directions i.e the securities are least related to one another.
Maximum diversification is achieved when r is equal to -1 i.e the two stocks move in opposite direction by the same magnitude.
Answer:
Loan Amortization Table is attached with this answer, please find it
Explanation:
First of all we calculate the Loan Payment per period
Loan Payment per year = r ( PV ) / 1 - ( 1 + r )^-n
Loan Payment per year = 0.11 ( (102,049 - 40,000 ) / 1 - ( 1 + 0.11 )^-4
Loan Payment per year = $6,825.39 / 0.341269 = 20,000 per year
Answer:
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Explanation:
Option C is correct.
The required rate of return and Value of a stock shares inverse relationship. That is, if the required return increases the value or the price of the stock will decrease and vice versa. Therefore, as a result of increase in the required return, the value of the stock will decrease.
