The Current (Simple Annualized) Yield on a Money Market Mutual

question 246

Short Answer

The current (simple annualized) yield on a money market mutual fund, based on the return for the most recent seven days, is 5.62%. What effective (annualized) yield will be reported for the fund?

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Definitions:

Marginal Cost

An alternative phrasing expressing the additional cost incurred from the production of the next unit of output.

Average Total Cost

The cost per unit is calculated by dividing the overall production cost by the quantity of units produced.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.

Increasing Returns to Scale

A situation in production where doubling the inputs results in more than doubling the output, leading to efficiencies and economies of scale.