Answered: The cost of investing in a mutual fund…

The cost of investing in a mutual fund includes 1. the loading charges 2. commissions when the fund buys and sells securities 3. management fees * 1 and 2 1 and 3 2 and 3 all of these choices

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 2LTAI

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The cost of investing in a mutual fund includes 1. the loading charges 2. commissions when the fund buys and sells securities 3. management fees * 1 and 2 1 and 3 2 and 3 all of these choices

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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
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The market value of a mutual fund's assets divided by the number of fund shares outstanding is equal to the A. Load charge B. Net Asset Value (NAV) C. Expense Ratio D. 12b-1 fee
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1. What is a mutual fund or unit trust? Explain and discuss the business model of mutual funds. What role do they play in the economy, and in the financial sector in particular? 2. A mutual fund has assets of K5 092.2 million and K4.6 million in liabilities with outstanding shares of 150.6 million. Calculate the net asset value (NAV) of the portfolio. 3. Another mutual fund manages a portfolio of securities of K120 million. The fund owes K4 million to advisers and a further K1 million for running expenses and has 5 million shares outstanding. Calculate the net asset value.
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Which of the following best describes an index mutual fund? Mutual fund manager based on preset ratio of stocks and bonds. Mutual fund manage based on a person's anticipated year of retirement. Passively managed fund design to mimic a specific market. Mutual fund that attempts to earn rates of return that exceed the return of the market.