deposits increase from $10‚000 to $12‚000. Your wealth elasticity of demand for savings deposits then is 15) Suppose that when your wealth increases from $100‚000 to $200‚000‚ your holdings of stock mutual funds increases from $20‚000 to $50‚000. Your wealth elasticity of demand for stock mutual funds then is 16) Suppose that when your wealth increases from $100‚000 to $200‚000 ‚ your holdings of U.S. Treasury securities increases from $2000 to $5000. Your wealth elasticity of demand for U.S.
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only an index mutual fund and picked none of its own stocks. Sarah Wolfe was considering Beta’s new goal and directions for coming year. II. A. Ms. Wolfe decided to follow “ index” to adjust equity market exposure. This is a good strategy due to that at the beginning of the foundation of the company‚ the size of her account was small and there were no much money for her to take a risk. The strategy she followed was the lowest risky way. Ms. Wolfe kept a majority of Beta’s funds in no-load‚ low-expense
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client’s mandate. In detail‚ the equity fund aims to seek long-term growth of capital through investments in a high quality portfolio of stocks‚ whose earnings are expected to grow at above-average rates. That is the growth investment style of active management. Besides‚ the bond fund seeks to maximize total return in a way that was consistent with the preservation of capital‚ which is done through an actively managed portfolio of high quality. However‚ the balanced fund seems to be a little different‚ since
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has a highly skilled workforce that is growing with a high per capita income relative to the nation as a whole. Many Nebraska business leaders and companies convey a strong positive outlook for our city and state. Dan Neary‚ chairman and CEO‚ Mutual of Omaha‚ states‚ “While uncertainty over the economy between both consumers and business will constrain growth on the national level‚ Omaha continues to defy the national trend with positive growth and good levels of capital investment. Omaha’s well-diversified
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pays 3.2% annual interest on its account. How long will it be before you have enough to buy the car? T= (In ($150‚000/$35‚000)/ ((In (1+.032)) = 46.20years 3. Suppose you are still committed to owing a $150‚000 Ferrari. If you believe your mutual fund can achieve 10.25% annual rate of return‚ and you want to buy the car in 10 years on the day you turn 30‚ how much must you invest today? PV=FV(1+r)^-t PV=$150‚000(1+.1025)^-10 PV=$56‚533.42 He should invest $56‚533.42 today 4. You have just made
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Section 4 Study Questions (12.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1.What is a money market account? (0.5 points) An account that invests your money in low risk investments with predictable interest rates. 2.What is a liquidation policy? (0.5 points) A policy that tells you when and how you can remove money from an account. 3.What is simple interest? (0.5 points) Interest gained only on the principle amount of an account.
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International Accounting Case 1-2 1. An individual investor might want to invest in an international growth fund so that they can diversify their assets into mutual funds that invest in the stock of foreign companies instead of companies that are only in one country. 2. Risks common to both domestic and international funds: a. Investment style risk - the chance that returns from non-U.S. growth stocks and small- and mid-cap stocks‚ will trail returns from the overall domestic stock
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Introduction In recent years‚ the issue of efficiently mobilizing capital has become the concern of all companies. There are some ways of doing this: borrowing from the banks‚ issuing stocks or issuing bonds. However‚ when the interest rate of borrowing from banks is very high due to high inflation‚ together with the stock market is quite instable; calling for capital from bond market is much more preferred by investors. In the context of this report‚ some major points regarding the bond market
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Default risk‚ Purchasing power risk‚ Foreign-exchange risk. The principal economic functions of financial assets include: The transfer of funds from those with surplus funds to those who need funds‚ The transfer of funds so as to redistribute the unavoidable risk associated with the cash flow generated by tangible assets among those seeking and providing the funds. the following are properties of financial assets: Reversibility‚ Moneyness‚ Liquidity. The length of time between the date the instrument
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INTRODUCTION Financial Services is a term used to refer to the services provided by the finance market. Financial Services is also the term used to describe organizations that deal with the management of money. Examples are the Banks‚ investment banks‚ insurance companies‚ credit card companies and stock brokerages. These are the types of firms comprising the market‚ that provide a variety of money and investment related services. Financial services are the largest market resource within the world
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