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Economics - Financial Markets 8 Online
OpenStudy (anonymous):

help!

OpenStudy (anonymous):

@jim_thompson5910

OpenStudy (anonymous):

this is my last article! haha i had so many! could you help guide me through three of them?

OpenStudy (anonymous):

i already did like half of number 3, i just dont know if i got it right

OpenStudy (anonymous):

okay :P

OpenStudy (anonymous):

i skipped 2 so im on 3

OpenStudy (anonymous):

what is index mutual fund?

OpenStudy (anonymous):

i did and ive re read it a couple times

OpenStudy (anonymous):

is that the only difference betweeen managing mutual fun?

OpenStudy (anonymous):

*fund

OpenStudy (anonymous):

so index is just that they invest in big name companies

OpenStudy (anonymous):

okok i get that!

OpenStudy (anonymous):

alright, and number 2 i just dont get at all

OpenStudy (anonymous):

yeah i see were it is :) Do you understand #2

OpenStudy (anonymous):

ohh

OpenStudy (anonymous):

could you explain?

OpenStudy (anonymous):

umm idk..

OpenStudy (anonymous):

less

OpenStudy (anonymous):

okayyy

OpenStudy (anonymous):

soo what does this mean to the question

OpenStudy (anonymous):

okay okay, hmm

OpenStudy (anonymous):

honestly im still kinda stuck

OpenStudy (anonymous):

so which would it work for then? in order to answer the question

OpenStudy (anonymous):

okay

OpenStudy (anonymous):

okay i get that, but how do i answer the question is where im confused

OpenStudy (anonymous):

okay.. ill figure it out. what about number 4

OpenStudy (anonymous):

okk hmm give me a sec

OpenStudy (anonymous):

The theory of averages doesn't work for investing in the Dow Jones Industrial Average or the Standard & Poor's 500- stock Index because even though the stocks still go up and down randomly they still tend to stick somewhere close to the average, even if it a little above or a little below its still close.

OpenStudy (anonymous):

thats as much as i get

OpenStudy (anonymous):

so i can just add that?

OpenStudy (anonymous):

but is what i wrote right?

OpenStudy (anonymous):

okay let me rewrite the whole thing

OpenStudy (anonymous):

The theory of averages doesn't work for investing in the Dow Jones Industrial Average or the Standard & Poor's 500- stock Index because even though the stocks still go up and down randomly they still tend to stick somewhere close to the average, even if it a little above or a little below its still close. So if you end up less then average you have to pay fees, taxes ect. and you are under the average, in this case you have not beaten the market. In order to beat it you would have be considerably over the average.

OpenStudy (anonymous):

really? cool!

OpenStudy (anonymous):

could you erase it again?

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