PracticeQs_FIN2062_Week6_MutualFundsII_ANSWERS

If you wish to purchase a mutual fund with low annual fees you should collect information on the of the various funds. O a) MER O b) P/E c) EPS O d) beta

Quiz Instructions Question 1 1 pts A pension fund manager is considering three assets. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill yielding 0.06. Info of the risky funds is as follows: Expected ret. std. dev. Stock fund 0.22 0.27 Bond fund 0.12 0.14 The correlation between the fund returns is 0.5. What is the expected return of the optimal risky portfolio? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

3. A pension fund has the following liability obligations to its pensioners: Market Value $4.25 Bln $5.75 Bln $3.50 Bln Liability A B C It has $13.50 Bln available cash to invest in the following bonds: Bond Ꭰ E Modified Duration Modified Duration 5.25 11.86 6.25 8.05 7.55 Set up the system of equations to determine how much of its available cash should the pension fund invest in the two bonds to ensure that the market value duration of assets will match the market value duration of liabilities.

Money market mutual funds (MMMFS) guarantee: A. NAV will always be $1.00 B. A minimum interest rate C. Are now federally insured, like bank deposits D. None of the above

Question 1) 니01K 12.t where m=1+7 B(t) =d() 12 m-l a) Mutual fund is carning an APR of What monthly deposit d is needed for a balnce 'of 2million dollars in 40years? Show work.

please help with how to solve this thank you

Long-term mutual funds primarily invest in assets that have O A. Assets that have maturities of less than one year B. Assets that have maturities of greater than one year OC.US Treasury Bills O D. Hybrid cars

Open-end mutual funds guarantee that there will be no load charges. to redeem investors' shares upon demand at the daily Net Asset Value (NAV). investors a minimum rate of return. to earn the rate of return promised in the prospectus. investors a minimum Net Asset Value (NAV).

Finance 3

Investing in mutual funds allows an investor to achieve O A. Diversification B. Professional portfolio management C. Guaranteed reservations at your favorite restaurant D. Returns equal to the S&P 500 O E. Both A & B

A mutual fund that invest in a mix of equity and fixed income securities that provide current cash flow is a(n)

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If investors shift funds from stocks into bank deposits (this is common during a financial crisis), this _______ the supply of loanable funds, and places _______ pressure on interest rates.   Question 9 options:   increases; upward   increases; downward   decreases; downward   decreases; upward

Need a, b1 and b2

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Understanding the Costs Involved in Mutual Fund Investments Bob is debating purchasing a mutual fund, but he has some questions for his financial advisor, Cho. The following table presents information on four different open-end mutual funds that Bob and Cho are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET MinT p 12.32 -0.04 2.6 TmRE r 15.77 0.06 5.5 PFIN 39.81 0.20 8.0 BRRT 43.21 0.29 9.1 BOB: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 fees and fund performance? CHO: Generally, funds that charge 12b-1 fees, such as MinT p, do not necessarily outperform funds that do not charge these fees. BOB: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 6%, when do I pay this fee? CHO: If you purchase 100 shares of this fund at the NAV, you will pay a commission of S pay $ in front-end fees. BOB: It sounds like these fees…

What would be the proper key strokes on the BA II Plus Financial Calculator by Texas Instrument for the below response?

Please explain step by step

Pls help ASAP

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