Which of the following would best explain a situation where the ratio of (net income/total equity) of a firm is higher than the industry average, while the ratio of (net income/total assets) is lower than the industry average? 1) The firm's net profit margin is higher than the industry average. 2) The firm's asset turnover is higher than the industry average. 3) The firm's equity multiplier must be lower than the industry average. 4) The firm's debt ratio is higher than the industry average. 5) None of the given answers. Jargon Rapid Growth is a mutual fund that has traditionally accepted funds from new investors and issued new shares at net asset value. Jeremy Jargon manages the fund himself and is concerned that its level of assets has become too high for his management abilities. He issues a statement that Jargon will no longer accept funds from new investors, but will continue to accept additional investments from current shareholders. Which of the following is true about Jargon Rapid Growth fund? 1) Jargon used to be an open-end fund but has now become a closed-end fund. 2) Jargon has always been an open-end fund and will remain an open-end fund. 3) Jargon has always been a closed-end fund and will remain a closed-end fund. 4) Jargon is an open-end fund but would change to a closed-end fund if it wouldn't accept additional funds from current investors. 5) Jargon is violating regulatory policy by refusing to accept new investors