How do actively managed funds differ from passively managed funds?  A. Managers of actively managed funds use their discretion to buy and sell assets as they attempt to generate higher returns. B. Actively managed funds focus on stocks; passively managed funds focus on bonds. C. Actively managed funds necessarily contain a greater variety of stocks or bonds than does a passively managed fund. D. Actively managed funds consistently outperform passively managed funds

Q: Are securities that provide for a sinking fund more or less risky from the bondholder’sperspective…

A: The securities that are provided for a sinking fund are less risky from the perspective of…

Q: Mutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks…

A: The correct answer is B) shareholders.A group of investors invest in mutual funds collectively.…

Q: When fed funds rate goes up, money supply goes up, too.  True  False

A: There is an inverse relationship between fed funds interest rate and money supply.

Q: Returns on mutual fund are calculated using predictions of yields. True False

A: False. Returns on mutual funds are typically calculated based on the actual performance of the…

Q: What is one advantage an ETF has over an open-end mutual fund.

A: Mutual fund is an institution that invests the money of small investors in financial securities like…

Q: Compare no-load and load mutual funds.

A: A load mutual fund imposes an offering cost or commission for the obtained stocks. This installment…

Q: Based on the empirical evidence pertaining to efficient markets, which of the following is most…

A: A Market is Considerd as efficient if: Security prices would adjust rapidly to the arrival of new…

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: Why do you think that some mutual funds would describe themselves as passive

A: There are many types of funds available in the market and each fund has own strategy of investment…

Q: How is the net asset value (NAV) of a mutual fund determined? What is meant by the term…

A: A mutual fund is a type of investment fund that is managed by the investment professionals and take…

Q: Compare raising cash funds in the capital market (selling new shares of stock) versus the bond…

A: Cash can be raised by the firm for multiple purpose such as expansion project, investment in to an…

Q: The net asset value of a mutual fund is calculated as ___ A) the number of shares outstanding B)…

A: The net asset value (NAV) of a mutual fund is calculated by dividing the total market value of all…

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: Advantages and disadvantages of exchange - traded funds versus mutual funds.

A: Mutual funds refers to a pool of investment. Mutual funds can be of two types:  closed ended and…

Q: Electronic funds transfers (EFTs) are decreasing used by companies due to the inconvenience and…

A: Electronic Funds Transfer (EFT) refers to the electronic exchange or transfer of money from one…

Q: A money market mutual fund or exchange-traded fund pools money from investors and purchases various…

A: Mutual funds: They are the institutions which collects money from different investors and then…

Q: Which of the following is likely to have a price that differs from its NAV?: -open-ended mutual…

A: Mutual funds are the pooled or managed fund that  managed by the asset management company. The asset…

Q: Advantages of investing in mutual funds compared to individual securities include all of the…

A: Mutual funds are type of investment, which are pooled from the group of investors, which are…

Q: Commission for raising funds via the bond and equity markets is an example of floatation costs.…

A: Flotation costs are referred to as an incurred through the publicly-traded corporation at the time…

Q: What is slippage in strategy implementation? Falling stock price Strategic intentions get distorted…

A: A brief understanding of the concept of Slippage in stock market:- Slippage refers to the difference…

Q: While Cash is a safe and easy store of funds, holding cash is still not without its risks and costs.…

A: The question is asking to identify the potential risks and costs associated with holding cash. The…

Q: When a small firm works with an investment banker to raise funds through the sale of bonds on a…

A: Bonds:Bonds are debt instrument also known as a fixed income security that is created for raising…

Q: A sinking fund can be set up in one of two ways. Discuss the advantagesand disadvantages of each…

A: Introduction: A sinking fund is a bond issuing provision that allows for the annual redemption of…

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: Consider the term Mutual funds and ETFs. What problem do Mutual funds and ETFs solve?

A: A mutual fund is type of a company wherein it pools the money of various investors and invests it…

Q: How to calculate Performance of Small-Cap mutual Funds

A: These funds contribute a significant part of their investible corpus equity or equity related…

Q: What is a good response to.... A hedge is something an investor can use to mitigate risk while…

A: Hedging is a financial strategy that investors use to manage and mitigate risks while pursuing…

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: portfolio management is also known as Investment management , or wealth management, or money…

A: Investment management :- Investment management involves more than just the purchase and sale of…

Q: Those financial markets that facilitate the flow of short-term funds are known as:   Question 6…

A: The objective of the question is to identify the type of financial market that facilitates the flow…

Q: Which are The very different patterns of cash flows on the securities which just described raise…

A: Capital budgeting is vital in marketing decisions. Decisions on investment, which take time to…

Q: Mutual funds are managed by _____ organized much like any other business. A) brokers B) market…

A: Mutual funds are investment vehicles that pool money from multiple investors to invest in a…

Q: The FTSE 100 Index is an example of a benchmark for measuring the performance of an Equity fund.…

A: Performance Evaluation: This function enables investors to assess the competence of the fund manager…