When funds calculate their returns, they assume that all distributions
A)
are withdrawn from the fund.
B)
are reinvested in shares of the fund.
C)
are reinvested in shares of a money market fund.
D)
are reinvested in shares of a market index fund.
B
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Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. The first-mover advantages include all of the following except:
A) best chance of becoming world leader. B) advantage in adapting to the local culture. C) lead in advertising and promotion exposure. D) gain business experience. E) substantial investments in marketing.
You have the choice of two equally risk annuities, each paying $5,000 per year for 8 years. One is an
annuity due and the other is an ordinary annuity. If you are going to be receiving the annuity payments, which annuity would you choose to maximize your wealth? A) the annuity due B) the ordinary annuity C) Since we don't know the interest rate, we can't find the value of the annuities and hence we cannot tell which one is better. D) either one because they have the same present value