Homework Answers
24) As the markets are highly efficient, it is difficult to outperform the benchmark index on a consistent basis. All mutual funds also has cost associated with fund management, which adds to the underperformance.
25) Index fund is a fund which replicates a particular index. For example, there are index funds for S&P500 and NASDAQ which tracks the performance of the the index. Investors can invest in such funds to replicate the benchmark.
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24. Why do most mutual funds underperform their benchmark index? 25. What is an index fund?
QUESTION 35 In comparison to their relevant index, most actively managed mutual funds: a. Outperform during...
QUESTION 35 In comparison to their relevant index, most actively managed mutual funds: a. Outperform during bull markets. b. Outperform during the majority of bear and bull markets. c. Match their benchmark return the majority of the time. d. Underperform the majority of the time. QUESTION 36 Which of the following statements regarding exchange-traded funds (ETFs) is least likely to be accurate? a. ETFs can be sold short. b. ETFs are more tax efficient than open-end mutual funds. c. ETFs...
A) index funds/ money market mutual funds/ sector funds B)esctor funds/index funds/money market mutual funds C)...
A) index funds/ money market mutual funds/ sector funds
B)esctor funds/index funds/money market mutual funds
C) money market mutual funds/index funds/sector funds
6. Mutual funds by risk and return Risk and Return of Money Market Mutual Funds, Sector Funds, and Index Funds The following three fund types differ in general price volatility and potential for return money market mutual funds, sector funds, and index funds Label the graph that follows to show the relative volatility and potential return of these...
What is a mutual fund? What are three reasons someone would invest in mutual funds? What...
What is a mutual fund? What are three reasons someone would invest in mutual funds? What are three objectives of mutual funds? You need $1,000,000 to expand your business. Which method, debt or equity financing would you pursue and why? Is now a good time to invest in the stock market? Why or why not? You have just inherited $1,000,000. What would you do with the money and why? What questions should you ask before investing in a mutual fund?...
how a mutual fund is structured. Make sure to explain why mutual fund fee's may or may not be worth the cost to you. Comment on why you might want to invest in a mutual fund instead of a good stoc...
how a mutual fund is structured. Make sure to explain why mutual fund fee's may or may not be worth the cost to you. Comment on why you might want to invest in a mutual fund instead of a good stock. Do not take any short cuts answering this question this week, I want detail. This is the investment tool that most individuals use. The companies provide detailed information for you to review every month. There are many types of...
When a mutual fund company charges a fee of 0.49% on its index funds
When a mutual fund company charges a fee of 0.49% on its index funds, its assets in the fund are $30 billion. When it charges a fee of 0.13%, its assets in the fund are $269 billion. (a) Let x denote the fee that the company charges as a percentage of the index fund and let A(x) denote its assets in the fund. Express A(x) as a linear function of x. (b) One company lowers its fees on various index funds from...
Most actively managed mutual funds, when compared to a market index such as the Wilshire 5000,...
Most actively managed mutual funds, when compared to a market index such as the Wilshire 5000, A. beat the market return in all years. B. beat the market return in most years. C. exceed the return on index funds. D. do not outperform the market.
QUESTION 16 Monica purchased 100 shares of NOLA mutual fund at a price of $25 per...
QUESTION 16 Monica purchased 100 shares of NOLA mutual fund at a price of $25 per share at the beginning of the year and paid a front-end load of 4.5%. The securities in the fund increased in value by 11% during the year and the fund’s expense ratio was 1.2%. What was Monica’s annual return for this year assuming she were to sell at year end? a. 4.50%. b. 4.85%. c. 5.30%. d. 9.80%. QUESTION 26 Most actively managed mutual...
and explain why Which index should Marvın use as a benchmark when evaluating the pertormance oh...
and explain why
Which index should Marvın use as a benchmark when evaluating the pertormance oh his mutual fund? 3 Index 0.56 ).65 Index 2 0.96 0.83 mae3 1.56 0.74 Index 4 0.75 0.98 Beta 2
The most significant difference between an exchange traded fund and an open end mutual fund is...
The most significant difference between an exchange traded fund and an open end mutual fund is that a. The net asset value (NAV) of exchange traded funds is higher than the NAV of open end mutual funds. b. An investor can divest himself of his exchang traded fund shares by selling them to another investor, but an investor can only sell his open end mutual fund shares back to the mutual fund c. Exchange traded funds do not have to...
A pension fund manager is considering three mutual funds. The first is a stock fund, the...
A pension fund manager is considering three mutual funds. The
first is a stock fund, the second
Check my work a batte 1.ba VE points A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a Tobili money market fund that yields a sure rate of 40 The probability distributions of the risky funds are: Eirs) = 10% 6s=327 Expected Return...
A) index funds/ money market mutual funds/ sector funds
B)esctor funds/index funds/money market mutual funds
C) money market mutual funds/index funds/sector funds
6. Mutual funds by risk and return Risk and Return of Money Market Mutual Funds, Sector Funds, and Index Funds The following three fund types differ in general price volatility and potential for return money market mutual funds, sector funds, and index funds Label the graph that follows to show the relative volatility and potential return of these...
and explain why
Which index should Marvın use as a benchmark when evaluating the pertormance oh his mutual fund? 3 Index 0.56 ).65 Index 2 0.96 0.83 mae3 1.56 0.74 Index 4 0.75 0.98 Beta 2
A pension fund manager is considering three mutual funds. The
first is a stock fund, the second
Check my work a batte 1.ba VE points A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a Tobili money market fund that yields a sure rate of 40 The probability distributions of the risky funds are: Eirs) = 10% 6s=327 Expected Return...
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