Which of the following statements is incorrect regarding a fund's size? a.Fund size increases because of poor past performance b.lf a fund size becomes too large, the fund will face diseconomies of scale. c.lf a fund is at its optimal size, the Fund manager must choose to either increase fund size for a higher salary, or to maintain fund size to generate higher returns. d.Larger fund size implies that fund managers will receive a large compensation (salary) e.Fund size decreases due to good past performance.
Which of the following statements is incorrect regarding a fund's size? a.Fund size increases because of poor past performance b.lf a fund size becomes too large, the fund will face diseconomies of scale. c.lf a fund is at its optimal size, the Fund manager must choose to either increase fund size for a higher salary, or to maintain fund size to generate higher returns. d.Larger fund size implies that fund managers will receive a large compensation (salary) e.Fund size decreases due to good past performance.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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