Answer all or dont take

Question 1:

Consider a mutual fund with $500 million in assets at the start of the year and 10 million shares outstanding. If the gross return on assets is 25% and the total expense ratio is 4% of the year-end value, what is the rate of return of the fund?

		21.0%
		20.0%
		19.7%
		18.3%
		None of the above

Question 2:

If a pension fund is large, well-diversified and invests in many different individual funds, the ________ measure is better for evaluating the performance of those individual funds. An index fund wishes to add an active portfolio to its current passive holdings. It will use the ________ to evaluate the performance of its portfolio.

		Sharpe; Information Ratio
		Treynor; Treynor
		Treynor; Information Ratio
		Sharpe; Treynor
		Cannot be determined from the information given

Question 3:

May is considering investing in one of several mutual funds, all of which have various permutations and combinations of front-end load, back-end loads, and/or expense ratios. The shorter he plans on remaining in the chosen fund, the more likely he will prefer a fund with a ________ rather than a ________, everything else equal.

		front-end load; back-end load
		back-end load; front-end load
		front-end load; expense ratio
		back-end load; expense ratio
		expense ratio; front-end load

Question 4:

Peter has $50,000 in savings that he wishes to invest in the SHW Growth Fund. The fund has a 3% front-end load and a 5% back-end load. With the entire $50,000, he is able to buy 1,000 shares of the fund. What is the current NAV of the fund?

		$46.08
		$48.50
		$50.00
		$51.70
		None of the above

Question 5:

Stock prices that are stable over time ________.

		Indicate that prices are useful indicators of true economic value
		Indicate that the market is not incorporating new information into current stock prices
		Ensure that an economy allocates its resources efficiently
		Indicates that returns follow a random-walk process
		Indicates that the market is strong form efficient