Question

QUESTION 33

1. Index mutual funds provide investors with advantages over managed equity funds because:

   		a. They have lower operating costs.
   		b. Their portfolio managers are superior.
   		c. They engage in more complete research.
   		d. They earn higher rates of return.

QUESTION 34

1. The Stride Fixed Income Fund has year end market value of assets of EUR 650 million with EUR 30 million in market value of its liabilities. Stride reports a net asset value of EUR 45.25. The number of outstanding shares is closest to:

   		a. 12,331,491.
   		b. 13,701,657.
   		c. 14,364,641.
   		d. 15,027,624.

Answer 1

Index mutual funds provide investors with advantages over managed equity funds because:

a. They have lower operating costs.

The number of outstanding shares is closest to:

=(650-30)/45.25

=13.70166

b. 13,701,657