MULTIPLE CHOICE
When evaluating actively managed equity mutual funds’ net returns (in the US), in a typical year:
A) about one half of funds have a higher return than the S&P500
B) about one third of funds have a higher return than the S&P500
C) about two thirds of funds have a higher return than the S&P500
When evaluating actively managed equity mutual funds’ net returns (in the US), in a typical year:-
B) about one third of funds have a higher return than the S&P500 as Mostly have not even able to beat the returns of the index while claiming that they would. They have been lagging even the returns of passive fund managers . So only one third of firm has done better in comparison to US security markets.
MULTIPLE CHOICE When evaluating actively managed equity mutual funds’ net returns (in the US), in a...
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.
What is the average historical performance of actively managed equity funds compared to the Wiltshire 5000 index? Active funds have _____ the index on average, _____ adjusting the index returns for trading costs and management fees. a) underperformed; even after b) outperformed; but only when not c) underperformed; but only when not d) outperformed; after
QUESTION 33 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 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...
Please help! Only Multiple Choice.
3. The average return from equity mutual funds over a period was 2 %. It is desired to test if the returns from growth fund over the same period exceed that of the equity fund. A sample of 9 growth funds showed an average retun of 2.183 % . It is known from past data that the standard deviation of the age of returns for growth funds is 0.2%. If we test H0 : μ-2...
Yes. It is a Multiple Choice Question.
1. If your mutual fund manager generates returns that earn a statistically significant CAPM a, MUST that manager be outperforming the market? (a) Yes, CAPM a means the asset is earning return that is not explained by exposure to the market (b) Yes, assuming you have enough data to generate reliable estimates of a and B (c) No, you will only find a significant CAPM a when you do not have a long...
The monthly returns on US Treasury bills over the past 50 years have: Multiple Choice sometimes been less than the monthly rate of inflation. provided consistently positive monthly rates of return for investors. always been positive on a real basis. exceeded inflation for all periods. ranged between zero and five percent on an annualized basis.
1) Suppose you invest your money evenly between two assets when you expect the correlation between their returns to be 0.2. While holding the two assets, however, they experience much higher correlation of 0.8. The difference in performance between what you expected and what you received is: A. expected returns and standard deviation in returns are both higher B. expected returns and standard deviation in returns are both lower C. expected returns are higher, but standard deviation in returns is...
A pension fund manager is considering three mutual funds for investment. The first one is a stock fund, the second is a bond fund and the third is a money market fund. The money market fund yields a risk-free return of 5%. The inputs for the risky funds are given in the following table. Fund Expected Return Standard Deviation Stock fund 13% 33% Bond fund 6% 16% The correlation coefficient between the stock and the bond funds is 0.4. a....
3 Much is made of the fact that certain mutual funds outperform the market year after year (that is, the. return from holding shares in the mutual fund is higher than the return from holding a portfolio such as the S\&P 500). For concreteness, consider a 10-year period and let the population be the 4,170 mutual funds reported in The Wall Street Journal on January 1, 1995. By saying that performance relative to the market is random, we mean that...
Need help on these 4 multiple choice questions
please!
25. Which of the following statements about Defined Benefit pension pl IL The employer is responsible for the investment choices. Employers who sponsor a defined b e loway be required to provide cash to cover funding shortfalls. All else equal, rising interest rates wil cqua, rising interest rates will increase an employer's stated pension liability for defined benefit plan. may be required to provide cash to the plan to A. I...