What is a risk of investing in split shares that is specific to a capital shareholder? Acronyms Calculator A. Early redemption. B. Leverage. C. Reinvestment. D. Credit. How do index-tracking ETFs differ from index mutual funds? Acronyms Calculator A. ETFs have lower administrative costs of record-keeping. B. Index mutual funds have lower tracking errors. C. D. ETFs only have initial investment and trading fees. Index mutual funds have lower implicit trading costs.

What is a risk of investing in split shares that is specific to a capital shareholder? Acronyms Calculator A. Early redemption. B. Leverage. C. Reinvestment. D. Credit. How do index-tracking ETFs differ from index mutual funds? Acronyms Calculator A. ETFs have lower administrative costs of record-keeping. B. Index mutual funds have lower tracking errors. C. D. ETFs only have initial investment and trading fees. Index mutual funds have lower implicit trading costs.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section15.3: Mutual Fund Investing Fees And Charges

Problem 2CC

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Exchange-traded funds are popular investments that are easy to sell and have the potential to earn significant income for investors. However, they fluctuate wildly in price, increasing the likelihood that an investment fails. This investment features? low risk, low return, and poor liquidity. low risk, high return, and good liquidity. high risk, high return, and poor liquidity. high risk, high return, and good liquidity.
Historically, index funds have had _________ thanmost actively managed mutual funds.a. higher feesb. less diversificationc. larger tax burdensd. better returns
An increase in the riskiness of financial securities results in a_______ in the supply of loanable funds and hence shift in the supply curve to the_______ O Decrease, leftO Decrease, rightO Increase, left O Increase, right
weigh up the advantages and disadvantages of Exchanges Traded Funds (ETF) and explain why they are popular with some investors.
Studies or data on mutual performance versus a market index find: Multiple Choice most mutual funds outperform the index. These findings refute the semi-strong efficient markets. most mutual funds outperform the index.These findings refute the strong form of efficient markets. most mutual funds under perform the index.These findings support the semi-strong form of the efficient market. mutual funds are riskless compared to the index.
Which of the following statement is incorrect regarding the importance of style analysis? O Style analysis helps analysts forecast changes in the business cycle. O Bond style analysis is based on Duration (sensitivity to interest rates) and Credit Ratings. O Style analysis helps investors choose appropriate funds for each asset class in their portfolio. O Style analysis helps investors rank funds of similar investment and/or category objective. Equity style analysis is based on Capitalisation and Investment Style (Value and Growth).
Which of the following investment types cannot be sold during normal market hours? a) mutual fund b) cryptocurrency c) exchange traded fund
Please do a and b separate (Question 2) a) Plot the Security Market Line (SML)b) Superimpose the CAPM’s required return on the SMLc) Indicate which investments will plot on, above and below the SML? d) If an investment’s expected return (mean return) does not plot on the SML, what doesit show? Identify undervalued/overvalued investments from the graph.
Which of the following is TRUE about liquidity? a. All assets should be put in liquid asset so that it is easy to use when necessary b. In most of the cases, the more liquid asset provides the lower return c. Investors should not care about liquidity in order to have a balanced portfolio investment d. Liquidity requirement does not have any impact on the return.
Which of the following regarding the investor sentiment theory of the closed end fund puzzle is FALSE? a) Investors in closed end funds are not as important an ownership group in the assets of the funds’ investment portfolios. b) The closed end fund is riskier than the underlying portfolio. c) Arbitrageurs are subject to limits to arbitrage. d) The noise trader risk is diversifiable.
Which of the following is most accurate in describing the problems of survivorship bias and backfill bias in the performance evaluation of hedge funds?a. Survivorship bias and backfill bias both result in upwardly biased hedge fund index returns.b. Survivorship bias and backfill bias both result in downwardly biased hedge fund index returns.c. Survivorship bias results in upwardly biased hedge fund index returns, but backfill bias results in downwardly biased hedge fund index returns.
What is RIGHT? Preferred stocks are a more expensive source of funds than common stocks A higher growth rate of Free Cash Flow leads to a lower evaluation Accounts Payable are NOT part of WACC Book values provide the best estimate for valuation as it comes from audited financial statements