which of the following statements about exchange traded funds (etfs) is true?\netf prices can change…

which of the following statements about exchange traded funds (etfs) is true?\netf prices can change throughout the day as they are exchanged on the market\nan etf is a single stock that you can buy in the stock market\netfs are traded once a day after the market closes\nactively managed etfs have very low fees\n\n5 multiple choice 10 points\nwhich of the statements below best describes the relationship between risk and return when considering an investment?\ninvestors expect to earn a higher return when they invest in a low risk asset\ninvestors expect to earn a higher return when they invest in a high risk asset\ninvestors expect to earn a lower return when they invest in a high risk asset\ninvestors expect to earn zero return when investing in a low risk asset\n\n6 multiple choice 5 points\nwhy is diversification a recommended investment strategy?\ninvesting in a diversified portfolio guarantees that you wont lose money with your investments\ndiversifying your portfolio helps reduce risk\nif you diversify your portfolio, you will definitely earn a high return\nif you tell your fund manager to use diversification, theyll charge you lower fees

which of the following statements about exchange traded funds (etfs) is true?\netf prices can change throughout the day as they are exchanged on the market\nan etf is a single stock that you can buy in the stock market\netfs are traded once a day after the market closes\nactively managed etfs have very low fees\n\n5 multiple choice 10 points\nwhich of the statements below best describes the relationship between risk and return when considering an investment?\ninvestors expect to earn a higher return when they invest in a low risk asset\ninvestors expect to earn a higher return when they invest in a high risk asset\ninvestors expect to earn a lower return when they invest in a high risk asset\ninvestors expect to earn zero return when investing in a low risk asset\n\n6 multiple choice 5 points\nwhy is diversification a recommended investment strategy?\ninvesting in a diversified portfolio guarantees that you wont lose money with your investments\ndiversifying your portfolio helps reduce risk\nif you diversify your portfolio, you will definitely earn a high return\nif you tell your fund manager to use diversification, theyll charge you lower fees

Answer

Brief Explanations:

  1. Los Fondos Cotizados en Bolsa (ETFs, por sus siglas en inglés) se cotizan en el mercado y su precio puede cambiar durante el día, similar a las acciones individuales. No es un solo activo sino una cartera de activos. Los ETF activamente administrados suelen tener tarifas más altas que los ETF pasivos.
  2. En general, los inversores esperan un retorno más alto cuando invierten en activos de alto riesgo, ya que asumen más riesgo. Los activos de bajo riesgo ofrecen retornos más bajos en promedio.
  3. La diversificación es una estrategia de inversión recomendada porque ayuda a reducir el riesgo. No garantiza que no se pierdan fondos ni que se obtenga un alto retorno, y no implica que los gestores de fondos cobren menos.

Answer:

  1. ETF prices can change throughout the day as they are exchanged on the market
  2. Investors expect to earn a higher return when they invest in a high - risk asset
  3. Diversifying your portfolio helps reduce risk