The largest percentage fee payable by a client when he is lending (y<1) and borrowing (y>1) Introduction: Active fund: Active funds refer to investing of funds by hands-on approach. The approach may be done by the portfolio manager or any of the active participant. Passive fund: Passive funds refer to investing of funds by the investors in index funds or other types of mutual funds.

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Chapter 6, Problem 26PS

Summary Introduction

To calculate:The largest percentage fee payable by a client when he is lending (y<1) and borrowing (y>1)

Introduction:

Active fund: Active funds refer to investing of funds by hands-on approach. The approach may be done by the portfolio manager or any of the active participant.

Passive fund: Passive funds refer to investing of funds by the investors in index funds or other types of mutual funds.

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