17. Financial markets allow for all but which one of the following?

a. shift consumption through time from higher-income periods to lower

b. price securities according to their riskiness

c. channel funds from lenders of funds to borrowers of funds

d. allow most participants to routinely earn high returns with low risk

18. Which of the following yield curves generally implies a normal healthy economy?

a. positive slope

b. negative slope

c. flat

d. hump-shaped curve

19. Consider a no-load mutual fund with $270 million in assets and 15 million shares at the start of the year and with $320 million in assets and 16 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $0.25 per share. Assuming that the fund carries no debt, and that the total expense ratio is 2%, what is the rate of return on the fund?

a. 24.74%

b. 26.94%

c. 19.85%

d. The answer cannot be determined from the information given.