U b er 11.2010 24. What would the NAV of an open-ended mutual fund priced at $20 be if the load is 5967 a) S9.60 b) $21.00 e) $19.40 d) $19.00 25. Sabrina Mutual fund is a no-load fund that had a net asset value one year ago of $25.60. Today the NAV is $28.83. During the year dividends or 50.72 were paid out and a capital gains distribution of $0.65 was made. Calculate the approximate yield for Sabrina. a) $27.3 b) 27.3 percent c) $11.45 d) 16.9 percent e) 10.27 percent 26. You borrowed $20,000 to make a $50,000 real estate investment. She later sold the real estate making a $4.000 profit. What was your approximate return on this investment? a) 40 percent b) 20 percent c) 13 percent d) 8 percent 27. The formula for the Required Rate of Return is r-Risk-free Rate+Beta (Market Rate - Risk-Free Rate). If your calculated Required Rate of Return on your investment in a stock is Il percent with a Beta of 1.5., the market rate is 8 percent, and the risk-free rate is 2 percent, which of the following cannot be Beta? a) 70.1 percent. b) 11 percent. c) 11.5 percent. d) 8.5 percent. 28. For a bond with a coupon rate of 4%; if market rate is 2%, the bond will be selling at . If market rate jumps to 6%, the bond will be selling at a) Par; Premium b) Premium; Discount c) Discount; Premium d) Market; Discount 29. You have 2 mutually exclusive investment opportunities. The first is a municipal bond with a return of 7 percent; while the second is a taxable bond with a return of 10 percent. Your MTR is 30%. Which one would you consider? a) The Municipal Bond b) The Taxable Bond c) Either one d) Both 30. An entity has 100.000 outstanding common shares with a market value of $20 per share. Dividends of $2 per share were paid in the current year, and the entity has a dividend payout ratio of 40%. The P/E ratio of the entity is: a) 2.5 b) 4 c) 10 d) 50