Exam 24: Professional Money Management, alternative Assets, and Industry Ethics

On January 1,2005,you invest $20,000 in Libby Mutual Fund,a load fund that charges a fee of 2.5%.The fund's returns were 9% in 2005,8% in 2006,3% in 2007.If you redeem all your shares on December 31,2007,what is the dollar value?

When alternative assets of investors are pooled together into a single pool of assets

All investment companies charge an annual

Net asset value (NAV)is determined by

The market price of shares of a closed-end fund is typically determined by supply and demand.

An example of an international fund would be one that consisted of investments in securities from

You are considering investing $50,000 in two mutual funds.The first fund is a load fund with a fee of 6% and you expect the fund to earn 11% over the next year.Alternatively,you could invest in a no load fund that is expected to earn 8% and has a 0.5 percent redemption fee.What fund has a higher return and how much more value will it have after the first year?

On January 2,2003,you invest $10,000 in the Dog Mutual Fund,a load fund that charges a fee of 7%.The fund's returns were 12.8% in 2003,13.9% in 2004,7.9% in 2005.On December 31,2005 you redeem all your shares.The dollar value is

Which of the following are functions that a portfolio manager should perform for clients?

The returns received by the average individual investor on funds managed by investment companies will probably be superior to the average results for a specific U.S.or international market.

The 12b-1 plan permits funds to deduct as much as ____ percent of average net asset per year to cover distribution costs,brokers' commissions,and general marketing expenses.

Suppose NBT Mutual Fund has no liabilities and owns only three stocks with the following number of shares and respective market prices. Stack dheres Price 7900 16 8100 15 Z 9200 12 The fund originated by selling $500,000 of stock at $100.00 per share.What is its current NAV?

Mutual fund performance studies have shown that most funds

On January 2,2003,you invest $50,000 in A Mutual Fund,a load fund that charges a fee of 7%.The fund's returns were 12.8% in 2003,13.9% in 2004,7.9% in 2005.On December 31,2005 you redeem all your shares in A.The dollar value is

High Portfolio turnover lowers mutual fund costs.

Which of the following is not an example of an alternative asset class?

A major question in modern finance regarding closed-end investment companies is

Given the following fees and expected returns for fund Y,assuming an initial investment of $1000 calculate the value of the investment at the end of 5 years Investment (Return) Load 12-1 fee Rear-end load Years 8\% 0\% 0.50\% 3\% 5 year

Suppose you consider investing $5,000 in a load fund from which a fee of 8% is deducted and you expect the fund to earn 12% over the next year.Alternatively,you could invest in a no load fund which is expected to earn 10% and which takes a 1/2 percent redemption fee.Which is better and by how much?

In the case of investment companies