Advantage of an indexed equity mutual fund

Assignment Help Macroeconomics
Reference no: EM131051095

Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund?

a. Indexed funds generally have better stock pickers.

b. Indexed funds engage in more detailed research.

c. Indexed funds have lower operating costs because they engage in less stock trading.

d. Indexed funds earn a significantly higher rate of return than a broad portfolio that represents the entire stock market.

Reference no: EM131051095

Questions Cloud

Interest on company-issued bonds : Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel,
Estimates produced by the two production lines : The Dutch Girl paint factory uses process costing in their plant to calculate monthly profit and loss for the two production lines producing house paint. Manager bonuses are based upon performance against goals set by the division's top management. W..
Entry to record the issuance of the loan : (Impairments) On December 31, 2014, Iva Majoli Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-bearing note. The note was issued to yield 10% interest.
Permanent shift in the level : Consider a one-time increase in the money stock by 3% relative to trend. Money supply initially grows at a constant rate of 2% per year. For one year, the money stock grows by 5% instead of 2%, and then returns to 2% growth.
Advantage of an indexed equity mutual fund : Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund? a. Indexed funds generally have better stock pickers.
Calculate the average product of labour : Suppose capital is fixed at 16 units. If the firm can sell its output at a price of $100 per unit and can hire labor at $25 per unit, how many units of labor should the firm hire in order to maximize profits?
Prepare the journal entry to record the reimbursement : (Petty Cash) The petty cash fund of Fonzarelli's Auto Repair Service, a sole proprietorship, contains the following.
Economic problem below please : Urgent please tutors, If possible kindly assist with the correct solution to the economic problem below please. Based on the Economists Explain the reason as to why college students choose to study.
Calculate the WACC and the value of the firm : Hose plc presently has a capital structure which is 30% debt and 70% equity. The cost of debt before taxes is 8% and for equity 15%. The firm's future cash flows, after tax but before interest, are expected to be perpetuity of €650.000. Calculate the..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd