
EBK PERSONAL FINANCE
8th Edition
ISBN: 8220106777794
Author: KEOWN
Publisher: PEARSON
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Question
Chapter 14, Problem 1PA
Summary Introduction
To discuss:
The advantages of possible of owning a mutual fund.
Introduction:
Mutual fund refers to the fund that is managed by the professionals and consists of the pool of money from various different investors in order to purchase different and various securities.
Expert Solution & Answer

Explanation of Solution
- The foremost advantage of mutual funds is that they diversify the money of the investors to buy different securities and doesn’t invest in a single stock.
- The second most advantage is it helps the investors to save the transaction cost due to large volume.
- The mutual fund provides the return that is adjusted with risk.
- The mutual fund provides various types of financial services to the investors as book keeping, checking the account for investors.
- Investing in mutual funds is quite flexible as the investor can invest in any mutual fund that suits them and will help them achieve their financial goals.
- Mutual funds offer liquidity as well.
Principal 8
- Principal 8 states that that the risk and returns go hand in hand.
- Diversification helps to reduce risk by investing in mutual funds that is a great advantage related to principal 8.
- The advantage related to principal 8 is that they provide investors with professional management that helps to reduce risks by investing in the right stocks.
Conclusion
Investment in mutual funds provides many advantages to the investors.
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Students have asked these similar questions
Need answer correctly if image is blurr then please comment i will write values.
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Consider the following gasoline sales time series. If needed, round your answers to two decimal digits.
Week
Sales (1,000s of gallons)
1
17
2
21
3
19
4
23
5
18
6
16
7
20
8
18
9
22
10
20
11
15
12
22
(a)
Show the exponential smoothing forecasts using α = 0.1, and α = 0.2.
ExponentialSmoothing
Week
α = 0.1
α = 0.2
13
(b)
Applying the MSE measure of forecast accuracy, would you prefer a smoothing constant of α = 0.1 or α = 0.2 for the gasoline sales time series?
An smoothing constant provides a more accurate forecast, with an overall MSE of .
(c)
Are the results the same if you apply MAE as the measure of accuracy?
An smoothing constant provides a more accurate forecast, with an overall MAE of .
(d)
What are the results if MAPE is used?
An smoothing constant provides a more accurate forecast, with an overall MAPE of .
After many sunset viewings at SUNY Brockport, Amanda dreams of owning a waterfront home on Lake Ontario. She finds her perfect house listed at $425,000. Leveraging the negotiation skills she developed at school, she persuades the seller to drop the price to $405,000. What would be her annual payment if she opts for a 30-year mortgage from Five Star Bank with an interest rate of 14.95% and no down payment?
a- $25,938
b- $26,196
c- $24,500
d- $27,000
Chapter 14 Solutions
EBK PERSONAL FINANCE
Ch. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PA
Ch. 14 - Prob. 11PACh. 14 - Prob. 1DC1Ch. 14 - Prob. 2DC1Ch. 14 - Prob. 3DC1Ch. 14 - Prob. 4DC1Ch. 14 - Prob. 5DC1Ch. 14 - Prob. 6DC1Ch. 14 - Prob. 7DC1Ch. 14 - Prob. 1DC2Ch. 14 - Prob. 2DC2Ch. 14 - Prob. 3DC2Ch. 14 - Prob. 4DC2Ch. 14 - Prob. 5DC2Ch. 14 - Prob. 6DC2Ch. 14 - Prob. 7DC2Ch. 14 - Prob. 8DC2Ch. 14 - Prob. CC.1QCh. 14 - Prob. CC.2QCh. 14 - Prob. CC.3QCh. 14 - Prob. CC.4QCh. 14 - Prob. CC.5QCh. 14 - Prob. CC.6QCh. 14 - Prob. CC.7QCh. 14 - Prob. CC.8QCh. 14 - Prob. CC.9QCh. 14 - Prob. CC.10QCh. 14 - Prob. CC.11QCh. 14 - Prob. CC.12QCh. 14 - Prob. CC.13QCh. 14 - Prob. CC.14QCh. 14 - Prob. CC.15QCh. 14 - Prob. CC.16QCh. 14 - Prob. CC.17QCh. 14 - Prob. CC.18QCh. 14 - Prob. CC.19QCh. 14 - Prob. CC.20Q
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