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A: load fee as a percentage of net asset value =( (sale value of share - net asset value)/ net asset…
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A: They are traded on an exchange, which consists of a basket of shares.
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A: A high water mark is used to decide the performance / incentive fees paid to the fund managers. It…
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- am. 83.How can a mutual fund manager who follows a momentum trading strategy expect to earn above - average return 1. Provided the stock price has been decreasing below the mean reversion point and other investors follow a mean reversion strategy the fund manager is likely to earn an above average return 2. If the fund manager follows a momentum strategy and buys a stock as the price is increasing while other investors follow a mean reversion strategy, then it is likely the stock price will continue to rise 3. Provided the stock price have been rising above the mean reversion point and other investors follow a mean reversion strategy, the fund manager is likely to earn an above average return 4. If the fund manager follows a momentum strategy and buys a stock as the price is increasing and other investors also follow a momentum strategy, then it is likely the stock price will continue to rise1. Computing the net asset value of a mutual fund investment Most mutual funds invest money in hundreds of stocks, bonds, short-term securities, or other securities and assets; then, shares of the funds themselves are sold to individual investors. To understand how the value of a mutual fund’s share is calculated based on the values of the assets it holds, consider the following simplified example of a mutual fund that owns shares of only four different stocks. Stock Symbol Current Market Price Number of Shares Total Value of Shares GlbEx $98.32 950 $93,404.00 TmRE 17.77 1,150 20,435.50 PFIN 70.81 850 60,188.50 BRRT 35.21 1,150 40,491.50 You can see from the table that the market value of the fund’s assets is ____ ? If the fund has $10,725.98 in liabilities and 6,000 shares outstanding, the net asset value (NAV) of a share in this mutual fund is ________?
- Which one of the following should you most likely recommend for a prospective investor who has an aggressive appetite? a. Actively managed funds b. Index Funds c. Any type of Mutual funds d. Pension FundWhat is different between long-term mutual funds and money market mutual funds and what are the main regulators of mutual funds?Select the term associated with mutual funds, ETFs and real estate that corresponds to each of the given descriptions. (Note: These are not necessarily complete definitions, but there is only one possible answer for each description.) Description This refers to a risk management technique where investors collect their money in a fund and then invest the fund into a diversified set of securities This plan is offered by most open-ended funds and allows intors to automatically receive a certain amount of money periodically This is an investment company that allocates investor funds into both income generating property and mortgage loans This is a specific type of real estate investment trust that owns and operates income-producing real This fund limits its investments to short-term, tax-exempt municipal securities Term
- 1. Suppose there is a mutual fund and each consumer buys | a share in it for her endowment at t = 0. The mutual fund maximises the wealth of its shareholders when choosing IF, the investment in the long term technology. At t =1, the mutual fund pays dividend d to each of its shareholders. At t = 1, the shares can be traded at price p*. a. Set up the mutual fund's optimisation problem and derive and interpret the first order condition. What happens when R increases and why? b. What is the optimal consumption profile cf , c and the optimal investment IF? | c. Calculate (i.e. derive an expression for) d and p. 2. Now suppose there is no financial intermediary to handle liquidity shocks. However, at t = 1 a market for bonds opens up and agents can trade their wealth at t = 1 for | wealth at t 2. Each bond pays 1 at t = 2 and its price is pM. Calculate the consumer's optimal investment decision IM at t = 0 , the price of the bond pM, and the optimal consumption in the two states cM, cM. 3.…please make the answer clearHow might the constant scrutiny and demand for consistentresults affect the long-term performance of a mutual fund?
- 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.If a mutual fund's net asset value is $23.60 and the fund sells its shares for $25.30, what is the load fee as a percentage of the net asset value?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