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

The primary purpose of government regulations and voluntary standards in the professional asset management industry is to ensure that managers deal with all investors fairly and equitably and that information about investment performance is accurately reported.

A portfolio is generally managed by the board of directors of an investment company.

The Securities Exchange Act of 1934

The offering price for a share of a load fund equals the net asset value of the share.

In the case of closed-end investment companies,shares of the company

A portfolio manager should be able to perform all of the following functions,except

Open-end mutual funds that charge a sales fee when the fund is initially offered to the investor are known as

In a long short-short hedge fund strategy

An open-end investment company is commonly referred to as a(n)

Suppose Mega Mutual Fund owns only the 4 stocks shown below with no liabilities. Stack Ahires Price A 1800 15 B 220[ 11 C 2300 9 D 1900 18 The fund originated by selling $300,000 of stock at $30.00 per share.What is its current NAV?

Given the following fees and expected returns for fund X,assuming an initial investment of $1000 calculate the value of the investment at the end of 5 years. Investment E(Return) Load 12-1 Rear-end load Years 10\% 2.5\% 0.25\% [\% 5 years

Which of the following is an approach to asset management?

On January 2,2003,you invest $10,000 in the W.O.W.Mutual Fund,a load fund that charges a fee of 5%.The fund's returns were 13.6% in 2003,12.2% in 2004,8.3% in 2005.On December 31,2005 you redeem all your W.O.W.shares.The dollar value is

A 12b-1 plan allows funds to

Investment companies or mutual funds that continue to sell and repurchase shares after their initial public offerings are referred to as

A no-load fund imposes a substantial sales charge and sells shares at their NAV.

On January 2,2003,you invest $100,000 in the Jeffers Mutual Fund,a load fund that charges a fee of 5%.The fund's returns were -14.6% in 2003,-6.4% in 2004,35% in 2005.On December 31,2005 you redeem all your shares.The dollar value is:

When securities are held in an investment company the appropriate way to value a client's investment is by net asset value (NAV).

Soft dollars are generated when

The text offers a number of suggestions for investing in mutual funds.Which of the following is not such a suggestion?