10 questions Finance and Investments need it in 30 Minutes!

The offer price of an open-end fund is $18 and the fund is sold with a front-end load of 5%. What is the fund's NAV? $18.74 $17.10 $15.45 $16.57 Which of the following funds are usually most tax-efficient? Equity Funds Bond Funds ETFs Special-sector Funds Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year and with $250 million in assets and 11 million shares at the end of the year. During the year investors have received income distributions of $2 per share and capital gain distributions of $.25 per share. Assuming that the fund carries no debt, and that the total expense ratio is 1%, what is the rate of return on the fund? 11.19% 23.75% 24.64% The answer cannot be determined from the information given Advantages of ETFs over mutual funds include all but which one of the following? ETF's trade continuously, so investors can trade throughout the day ETF's can be sold short or purchased on margin, unlike fund shares ETF's proficers do not have to sell holdings to fund redemptions Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as ____________. Direct operating expenses Back-end loads 12b-1 charges Front-end loads Advantages of investment companies to investors include all but which one of the following? Record keeping and administration Low cost diversification Professional management Guaranteed rates of return If you place an order to buy or sell a share of a mutual fund during the trading day, the order will be executed at _____. The The The The NAV calculated at the market closet at 4pm New York Time real time NAV NAV delayed 15 Minutes NAV calculated at the opening of the next day's trading A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on yearend asset values. If there are no distributions, what is the end-ofyear NAV for the fund? $50 $55.44 $56.12 $54.55 An official description of a particular mutual fund's planned investment policy can be found in the fund's _____________. Prospectus Indenture Investment statement 12b-1 Forms The commission, or front-end load, paid when you purchase shares in mutual funds may not exceed __________ 3.5% 6% 8.5% 10% The offer price of an open-end fund is $18 and the fund is sold with a front-end load of 5%. What is the fund's NAV? $18.74 $17.10 $15.45 $16.57 Which of the following funds are usually most tax-efficient? Equity Funds Bond Funds ETFs Special-sector Funds Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year and with $250 million in assets and 11 million shares at the end of the year. During the year investors have received income distributions of $2 per share and capital gain distributions of $.25 per share. Assuming that the fund carries no debt, and that the total expense ratio is 1%, what is the rate of return on the fund? 11.19% 23.75% 24.64% The answer cannot be determined from the information given Advantages of ETFs over mutual funds include all but which one of the following? ETF's trade continuously, so investors can trade throughout the day ETF's can be sold short or purchased on margin, unlike fund shares ETF's proficers do not have to sell holdings to fund redemptions ETF values can diverge from NAV Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as ____________. Direct operating expenses Back-end loads 12b-1 charges Front-end loads Advantages of investment companies to investors include all but which one of the following? Record keeping and administration Low cost diversification Professional management Guaranteed rates of return If you place an order to buy or sell a share of a mutual fund during the trading day, the order will be executed at _____. The NAV calculated at the market closet at 4pm New York Time The real time NAV The NAV delayed 15 Minutes The NAV calculated at the opening of the next day's trading A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year-end asset values. If there are no distributions, what is the end-of-year NAV for the fund? $50 $55.44 $56.12 $54.55 An official description of a particular mutual fund's planned investment policy can be found in the fund's _____________. Prospectus Indenture Investment statement 12b-1 Forms The commission, or front-end load, paid when you purchase shares in mutual funds may not exceed __________ 3.5% 6% 8.5% 10%