What are the two best reasons for considering a load fund? A. Lack of good no-load funds and superior market performance. B. Preference for a particular fund manager or a specialized type of fund. C. Superior market performance and preferential tax treatment. D. Tax-free income and superior fund managers. E. No management fees rand a particular fund manager.
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What are the two best reasons for considering a load fund?
A. Lack of good no-load funds and superior market performance.
B. Preference for a particular fund manager or a specialized type of fund.
C. Superior market performance and preferential tax treatment.
D. Tax-free income and superior fund managers.
E. No management fees rand a particular fund manager.
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- A. Based on the Sharpe ratio, which fund displays superior performance? B. Suppose you are an investment counselor with a new client, Jonsey, and that Funds A and B are the only options available in Jonsey's company sponsored retirement account. Jonsey has no other investments. Which fund would you recommend, and why? C. What additional evidence would make you more confident in your recommendation, that is, more confident that the fund you recommend has the ability to perform in the future? (Hint: The answer has nothing to do with the Treynor Index.)What are the consequences of using a poor benchmark toevaluate a fund manager?Use the following to answer questions a. – f. a. What is the alpha for Fund B? b. Based on alpha, which fund displays superior performance? c. What is the Sharpe ratio for Fund B? d. Based on the Sharpe ratio, which fund displays superior performance? e. Suppose you are an investment counselor with a new client, Jonsey, and that Funds A and B are the only options available in Jonsey's company sponsored retirement account. Jonsey has no other investments. Which fund would you recommend, and why? f. What additional evidence would make you more confident in your recommendation, that is, more confident that the fund you recommend has the ability to perform in the future? (Hint: The answer has nothing to do with the Treynor Index.)
- The figures are for illustrative purposes and are not based on past performance with respect to the fund where your policy is linked. The investment returns used are for illustrative The returns are likely to change during the period. Also, the assumed returns do not represent the upper and lower limits of the actual return that may be realized. Values are calculated assuming the fund is earning 6%*, 8%* and 12%*. It is assumed that mode of payment is ANNUITY DUE.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 shrinksIdentify the incorrect statement in connection to working capital management: A. Conservative financing policies use short-term funds to finance only part of fluctuating current assets. B. Long-term funds are more expensive and more risky than short-term funds . C. The objectives of working capital management are profitability and liquidity. D. Permanent current assets should be financed from long-term sources if a moderate policy is adopted.
- What is the shortcoming of using peer group performance comparisons to judge performance of a fund? A) The fund manager’s investment objectives may be more meaningful than its peers. B) The fund manager’s investment objectives may be more cash dominant than its peers. C) The fund manager’s investment objectives may be the same as its peers. D) The fund manager’s investment objectives may be narrower or wider than its peers.What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why would an investor prefer to evaluate a fund based on a cash-on-cash return?Which one of the following fund types is likely to have the lowest annual expense ratio? a. Index funds b. Equity funds c. Bond funds d. Balanced funds e. Hybrid funds Clear my choice
- For example you need money from outside and that's why you are looking for the best options of external fund which need to be evaluated in terms of: The Length of the Time The Cost The Amount of Company Control Lost All of The Above None of The AboveWhen using the information ratio to compare the performance of two fund managers, all else being equal, which of the following would you select? A) The fund manager with a positive information ratio. B) The fund manager with a negative information ratio. C) The fund manager with the lowest information ratio. D) The fund manager with the highest information ratio.A borrower who takes out a loan usually has better information about the potential returns and risks of the investment projects he plans to undertake than the lender does. This inequality of information is called O a. adverse selection. b. moral hazard. C. asymmetric information. O d. noncollateralized risk.