Reference no: EM132154989
1. Which of the following is true about the differences between no-load mutual funds and load mutual funds?
a. Load funds charge a yearly management fee whereas no-load funds do not.
b. No-load funds have no charges for purchases, but fees are charged to sell them, and load funds have fees at the beginning and at the end.
c. Load funds generally have fewer different stocks and bonds in their investment portfolio
d. No-load funds invest in fewer types of investments than load funds.
e. No-load funds do not charge when you buy shares and load funds do.
2. Assume Digby expands operations in Asia Pacific in the coming year. In doing so, they have added capacity to fill all demand in-house and have increased automation to reduce labor cost by 10%. For clarity, assume the following are true: Daze material cost is still $12.75. Daze labor cost last year was $9.00. Daze will be priced at $32.50 per unit, in American dollars. Shipping costs from the Americas to Asia Pacific are $2.50 per unit. What will Daze's contribution margin be in Asia Pacific for the coming year?
35.8%
33.1%
25.4%
28.2%
3. Sandy is a personal financial planner at Pro-future, Inc. Pro-future is a financial company that focuses on personal and business financing. When potential customers come to Sandy for financial advice, she first determines their investment goals in order to create a financial plan that fits their needs. Once she has created a suitable financial plan for a customer, Sandy gives her clients a pamphlet with suggestions for helping to accumulate the amount of money that they need.
Advice about risk is given to all of Sandys clients. Sandy also makes strategic financial plans for each of her customers, which helps them to track and achieve their financial goals.
Refer to Pro-future, Inc. Why would Sandy consider risk to be a good thing?
a. The higher the risk, the higher the rate of investment.
b. The higher the risk, the larger the possible return.
c. The lower the risk, the lower the rate of investment.
d. The higher the risk, the lower the possible investment.
e. The lower the risk, the larger the possible return.