Finance You are an investor who is looking to invest into a fund. Given the following investment criteria, which fund would be the best fit? You are a long-term investor (less worried about liquidity) You still need some flexibility in being able to purchase/redeem the investment at fair value You prefer a fund that undertakes some tactical asset allocation (changing its strategy based on market conditions) You are comfortable with higher risk. Passively managed, index fund Actively managed, closed-end fund Passively managed, open-ended fund Actively managed, open-ended fund

Q: How do actively managed funds differ from passively managed funds?  A. Managers of actively managed…

A: CORRECT OPTION TO THE ABOVE QUESTION  IS "OPTION A" : Managers of actively managed funds use their…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: ParticularExpected ReturnStandard DeviationStock Fund19%34%Bond Fund10%18%Risk Free…

Q: In a private equity buyout, you will eventually need to exit, and the operational changes will…

A: A private equity buyout refers to a type of investment transaction in which a private equity firm…

Q: None

A: Step 1:For the given data, the LP (Linear Programming) model can be formulated as follows,Decision…

Q: Hedge funds are known for generating higher returns. Discuss the investment strategies that are…

A: Hegde funds can be defined as those funds which collects money from the investors and then use that…

Q: 3. Consider an individual who has the possibility of investing an amount t in period 1 in a fund…

A: Amount Invested in Period 1 is "t" Amount received in Period 2 is "s" Interest rate "r" is positive

Q: What is the primary advantage of owning mutual funds over individual securities? Mutual funds offer…

A: In mutual fund money is collected from large number of investors and collected money is invested in…

Q: O Identifying your investment objective O Comparing funds based on risk and re O Buying shares in…

A: Selection of mutual funds and investment in mutual fund required planning and thinking According to…

Q: 1. Suppose there is a mutual fund and each consumer buys a share in it for her endowment at t = 0.…

A: The mutual fund's optimization problem is to maximize the sum of the shareholders' utilities, given…

Q: In the PSE trading flow, in what step do the investors prepare the fund?  a.step 5     b.step 3…

A: Philippine Stock Exchange Index is defined as an important or main stock market index, which helps…

Q: Open to all investors, can be invested with small sums of money and is less risky are all…

A: Explanation : Hedge funds have the ability to the high-risk tactics, such as the short selling…

Q: Which of the following investment types cannot be sold during normal market hours? a) mutual fund…

A: Investment is a process of investing money with the motive of making more money.  The person who…

Q: s not well-diversified. c. A measure of market portfolio performance is essenti

A: when the portfolio is completely diversified, and stock movement is like the movements of NASDAQ,…

Q: The key similarities and differences between a small company equity fund (also called a small cap…

A: An equity fund is a type of mutual fund. In an equity fund the fund manager predominantly invests…

Q: As the investment manager of the Oman investment fund, you wish to have a well-diversified…

A: A well-diversified international bond portfolio has the advantage of reducing the unsystematic risk…

Q: Which of the following is an example of direct finance? Select one: investors buy shares in a…

A: Direct finance: Direct finance can be described as a financing method where the funds are borrowed…

Q: The cost of investing in a mutual fund includes 1. the loading charges 2. commissions when the fund…

A: Mutual funds work like trust in which money of investor is invested by fund managers and charges are…

Q: 1 . Which investor type would most likely have high tolerance for risk, long investment horizon, and…

A: The first question is asking which type of investor is most likely to have a high tolerance for…

Q: Why is it so hard for actively managed funds to generate higher rates of return than passively…

A: Introduction: Mutual funds are institutions interested in pooling small sums from different…

Q: Which mutual fund tends to be invested in companies with relatively low P/E ratios and good growth…

A: A high level of PE could mean that the mutual fund investment mainly has shares that quote an…

Q: A capital gain distribution is

A: A capital gain distribution refers to the distribution of profits or gains realized from the sale of…

Q: The _________ of an open-end fund provides the only market for buying or selling the shares of the…

A: Secondary market is the market where the trading of securities take place for the securities that is…

Q: A Money Market fund that is always flush with cash is looking to lend cash through the Repo market.…

A: Money markets are financial markets where short-term debt securities with high liquidity and low…

Q: In semi-strong form efficient markets, a passive fund is likely to perform better O worse O the same…

A: The answer is Option C: the same..In semi-strongly efficient markets, it is generally believed that…

Q: Investors who are looking for capital preservation tend to invest in stocks and stock mutual funds…

A: There are various alternative to invest such as stocks, bonds, mutual funds, derivative instruments,…

Q: The key similarities and differences between a small company equity fund (also called a small cap…

A: In today scenario Mutual fund become the best source of generating consistent income for small group…

Q: Under the CAPM, all investors form portfolios of two assets, a risk-free asset and a risky portfolio…

A: The Capital Asset Pricing Model (CAPM) is a financial model used to estimate the expected return of…

Q: An exchange fund with an objective of investing in stocks considered to be a need versus want by the…

A: A Growth Fund is a type of mutual fund or exchange-traded fund (ETF) that primarily invests in…

Q: A more actively managed mutual fund will generally have a expense ratio than a fund that is active.…

A: Mutual funds have various types of expenses

Q: When LPs commit capital to the venture capital fund, _______________. Group of answer choices a.…

A: Limited partners (LPs) are investors in a limited partnership, such as a venture capital (VC) fund…

Q: Which of the following is NOT a correct description of venture capital fund? Group of answer…

A: Venture capital (VC) refers to a form of private equity financing that is typically provided to…

Q: : What is the main objective of Balanced Unit Trust Fund?

A: Balanced unit trust fund is a diversification in financing which comprises of different sources of…

Q: Compare the funds based on their size, management, risk level, and dividend distributions. Then,…

A: A mutual fund is an investment opportunity whereby allows the investors to buy securities. It is…

Q: You are evaluating the performance of two fund managers to help a client understand their strengths…

A: Portfolio are managed by the fund managers and each manager have own strength and own weekness but…

Q: 21) A pension fund would like to add an investment to its portfolio. Investment A has a Sharpe Ratio…

A: Sharpe Ratio of Investment A = 1.30 Sharpe Ratio of Investment B = 1.50 Investment B better = ?

Q: 1. Suppose there is a mutual fund and each consumer buys a share in it for her endowment at t = 0.…

A: a. The mutual fund's optimization problem is to maximize the sum of the present values of the…

Q: A. Positive (increase å increase)

A: Risk is an uncertainty of mishappening which is affected by something which human values such as…

Q: Historically, index funds have had _________ thanmost actively managed mutual funds.a. higher feesb.…

A: Option D. Better Returns   Explanation Historically, Index funds have outperformed Actively managed…

Q: Description Activist funds need to devore more time and resources o invastments compared to most…

A: The question is based on the concept of a special investment strategy used in a hedge fund manager.…

Q: The table below gives the after-fee performance of the vector fund and the Market portfolio: Asset…

A: Sharpe has calculated proportionate risk premium from the angel of standard deviation and compare it…

Types of Money Market Instruments