Which of the following regarding the closed end fund puzzle is FALSE? Group of answer choices a) Discounts of the closed end funds are the norm.  b) The fluctuations in the discounts appear to be mean reverting. c) When the existing funds trade at a discount, the new funds are also issued at a discount. d) When a closed end fund is open ended, the discount shrinks

Q: What is a benchmark and why is there a need to compare the fund's return vis-a-vis a benchmark?

A: Benchmark is considered as a standard against which the actual performances of the securities are…

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: Other financing sources increase fund balance in the same manner as revenue. a. True b. False

A: yes, Other financing sources increase fund balance in the same manner as revenue because fund…

Q: Statement 1: ETFs charge relatively low management fees. Statement 2: All open-end funds charge…

A: (ETF)Exchange traded funds are like other pooled funds that can be traded on the platform of the…

Q: When deciding whether or not to take a trade discount, the cost of borrowing funds should be…

A: Trade Discount - It is the discount which is given on bulk purchase, the same is reduced from the…

Q: Which is incorrect regarding annuities? A. Annuities do not use the pooling technique to spread risk…

A: An annuity is a technique in which investor invest their money periodically or lump-sum payments.…

Q: Traditional approach to financial management is how the funds can be utilised efectively. Select…

A: False

Q: What are the consequences of using a poor benchmark to evaluate a fund manager?

A: Benchmark is the standard used for the comparison by the company to know the current performance…

Q: With a decrease in time preference, the supply of loanable funds will increase.   Select one: True…

A: Loanable funds includes all forms of credit, such as loans, bonds, or savings deposits. There is an…

Q: what are the key characteristics of active fund management and passive fund management, focusing on…

A: Funds management is the process of managing a financial institution's cash flow. The fund manager…

Q: Which of the following is not true with Money Market? Select one: a. Deals in short term funds b.…

A: Money market is a market wherein short term instruments are traded and only those investors who are…

Q: The term sinking fund is used when we know the sum we need to accumulate and must find the amount of…

A: Introduction: Sinking fund is a type of fund which is used by corporates especially if they want to…

Q: How will a decrease in time preferences affect the loanable funds market?   A.   There will be an…

A: Decrease in time preferences tells us that individuals in the economy are more patient and more…

Q: How do you think the misstatement of funds will impact the income statement and balance sheet?

A: Income statement is a statement which shows all income and expenses of the business with calculation…

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: What are the limitations/problems from classifying performance using raw returns? and, What are the…

A: Limitations of classifying performance using raw returns: Raw data may be incomplete and may not…

Q: Explain the differences between Restricted investment account (RIA) and Unrestricted investment…

A: Islamic accounting can be defined as the process of accounting based on  Islamic law that is…

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use…

A: Spontaneous source of funds means source through which funds can be arises from daily business…

Q: . Like closed-end funds, ETFs can sell at a premium or discount to their net asset values. True or…

A: An ETF, or exchange-traded fund, is a type of investment vehicle that tracks a particular index,…

Q: 9) What are first and second closed-end fund puzzles? Why is this phenomenon not observed for open-…

A: The closed fund puzzles are defined as the issue of the shares of the company up to a fixed limit…

Q: Which of the following hybrid funds attempts to protect against inflation as well as exchange rate…

A: 1. Real Return Fund: A Real Return Fund is a type of hybrid fund that attempts to protect against…

Q: Why can closed-end funds sell at prices that differ from net asset value while open-end funds do…

A: An open-ended fund is the investment vehicle in which assets are pooled from diversified investors…

Q: Tournament fund is treated as Select one: a. Revenue receipt b. All the above points c. Capital…

A: Tournament fund- It is a fund which is made by those organizations which are established for the…

Q: Which of the following is not true with Money Market? Select one: O a. Deals in short term funds b.…

A: The money market is a type of financial market that deals with near-term instruments.

Q: Where do nothing was preferred what assumption is being made about the return generated by the…

A: When the phrase "where nothing was preferred" is mentioned, it implies that the return generated by…

Q: Discount or Premium. What does it mean for a closed-end fund to trade at a discount? What does it…

A: Investment funds are financial instruments that combine the capital of several investors and use it…

Q: Short-term funding can result to noncurrent payables. Group of answer choices True False

A: Financing refers to a process of funding business activities, for making purchases and investment of…

Q: Based on your understanding of the fAactors that affect the cost of money, Identify which of the…

A: Higher inflation rate would lead to higher interest or nominal rate on the borrowed amount. This is…

Q: The funds requirement can be forecasted by theforecasted financial statement approach, but youcould…

A: Additional funds required (AFN) is that the quantity of cash a corporation should raise from…

Q: Which one of the following fund accounting required to prepare a statement of cash flow?  a.…

A: Fund accounting refers to the accounting system used for keeping a record of the resources received…

Q: How do you find historical returns and benchmarks on different funds?

A: Historical returns are based on the historical data of the company which portrays how the security…

Q: This can occur when a selection among mutually exclusive alternatives is based wrongly on…

A: The internal rate of return (IRR) is the annual rate of growth expected to be generated by an…