Question
Which of the following strategies violate all three forms of the Efficient Market Hypothesis? [I] Shorting companies with non-English names and buying companies with English
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Which of the following strategies violate all three forms of the Efficient Market Hypothesis?
[I] Shorting companies with non-English names and buying companies with English names consistently generates abnormal profits for investors.
[II] Shorting companies that announce negative accounting profits and buying companies that announce positive accounting profits consistently generates abnormal profits for investors.
I only
II only
I and II
Neither
2. Johnny has $25,000 in savings that he wishes to invest in the NCT Growth Fund. The fund has a 0% front-end load and a 4% back-end load. With the entire $25,000, he is able to buy 1,000 shares of the fund. What is the current NAV of the fund?
$24 | ||
$25 | ||
$26 | ||
None of the above |
3. The KDL Fund has a front-end load of 3%, a back-end load of 2% and an expense ratio of 1%. NAV of the fund at the beginning of the year (t=0) is $20. During the year, the fund paid out dividend distributions of $0.60 to investors. Assume the stocks in the KDL Fund went down by 10% during the year. What is the NAV at year end (at t=1)?
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$17.22
$17.82
$18.00
$18.42
None of the above
4. The Winwin Growth Fund has a beginning-of-year NAV of $23. During the year, the assets of the fund grew by 5.5%. The fund has a 2.5% expense ratio and 0.5% 12b-1 fee. What is the end-of-year NAV of this fund?
$23.54 | ||
$23.66 | ||
$25.35 | ||
$24.27 | ||
None of the above |
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