Exam 4: Mutual Funds and Other Investment Companies

A mutual fund had average daily assets of $4.0 billion in 2018. The fund sold $1.5 billion worth of stock and purchased $1.6 billion worth of stock during the year. The fund's turnover ratio is

In 2018, the proportion of US mutual funds (based on total assets) specializing in common stocks was

Differences between hedge funds and mutual funds are that

In 2018, the proportion of US hybrid (bond and stock) mutual funds (based on total assets) was

Pinnacle Fund had year-end assets of $825,000,000 and liabilities of $25,000,000. If Pinnacle's NAV was $32.18, how many shares must have been held in the fund?

You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 5.75%. If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio was 1.25%, your return if you sold the fund at the end of the year would be

Which one of the following statements regarding closed-end mutual funds is false?

These kind of money market funds must calculate net asset values, which may differ from $1.00.

Closed-end funds are frequently issued at a ______ to NAV and subsequently trade at a __________ to NAV.

The fee that mutual funds use to help pay for advertising and promotional literature is called a

Of the following types of mutual funds, an investor who wishes to invest in a diversified portfolio of stocks worldwide (including the U.S.) should choose

Pools of money invested in a portfolio that is fixed for the life of the fund are called

A mutual fund had NAV per share of $26.25 on January 1, 2018. On December 31 of the same year, the fund's rate of return for the year was 16.4%. Income distributions were $1.27, and the fund had capital gain distributions of $1.85. Without considering taxes and transactions costs, what ending NAV would you calculate?

Most actively-managed mutual funds, when compared to a market index such as the Wilshire 5000,

A mutual fund had average daily assets of $2.0 billion in 2018. The fund sold $500 million worth of stock and purchased $600 million worth of stock during the year. The fund's turnover ratio is

The Yachtsman Fund had NAV per share of $36.12 on January 1, 2018. On December 31 of the same year, the fund's NAV was $39.71. Income distributions were $0.64, and the fund had capital gain distributions of $1.13. Without considering taxes and transactions costs, what rate of return did an investor receive on the Yachtsman Fund last year?

A mutual fund had NAV per share of $23.00 on January 1, 2018. On December 31 of the same year, the fund's NAV was $23.15. Income distributions were $0.63, and the fund had capital gain distributions of $1.26. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the MSCI France Index should choose

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the S&P 500 should choose

Assume that you purchased 200 shares of Super Performing mutual fund at a net asset value of $21 per share. During the year, you received dividend income distributions of $1.50 per share and capital gains distributions of $2.85 per share. At the end of the year, the shares had a net asset value of $23 per share. What was your rate of return on this investment?