Investments 10th Edition By Bodie-Test Bank

Test Bank For Investments 10th Edition By Bodie

ISBN-10:9780077861674, ISBN-13:978-0077861674

Mutual Funds and Different Funding Corporations

A number of Selection Questions
1.

Which one of many following statements concerning open-end mutual funds is fake?
A. The funds redeem shares at web asset worth.

B. The funds provide buyers skilled administration.

C. The funds provide buyers a assured fee of return.

D. The funds provide buyers skilled administration and a assured fee of return.

E. The funds redeem shares at web asset worth and provide buyers skilled administration.

2.

Which one of many following statements concerning closed-end mutual funds is fake?
A. The funds at all times commerce at a reduction from NAV.

B. The funds redeem shares at their web asset worth.

C. The funds provide buyers skilled administration.

D. The funds at all times commerce at a reduction from NAV and redeem shares at their web asset worth.

E. Not one of the choices

3.

Which of the next capabilities do funding firms carry out for his or her buyers?
A. Report preserving and administration

B. Diversification and divisibility

C. Skilled administration

D. Decrease transaction prices

E. All the choices

4.

A number of Mutual Funds had year-end belongings of $457,000,000 and liabilities of $17,000,000. There have been 24,300,000 shares within the fund at year-end. What was A number of Mutual’s web asset worth?
A. $18.11

B. $18.81

C. $69.96

D. $7.00

E. $181.07

5.

Progress Fund had year-end belongings of $862,000,000 and liabilities of $12,000,000. There have been 32,675,254 shares within the fund at year-end. What was Progress Fund’s web asset worth?
A. $28.17

B. $25.24

C. $19.62

D. $26.01

E. $21.56

6.

Diversified Portfolios had year-end belongings of $279,000,000 and liabilities of $43,000,000. If Diversified’s NAV was $42.13, what number of shares should have been held within the fund?
A. 43,000,000

B. 6,488,372

C. 5,601,709

D. 1,182,203

7.

Pinnacle Fund had year-end belongings of $825,000,000 and liabilities of $25,000,000. If Pinnacle’s NAV was $32.18, what number of shares should have been held within the fund?
A. 21,619,346.92

B. 22,930,546.28

C. 24,860,161.59

D. 25,693,645.25

8.

Most actively managed mutual funds, when in comparison with a market index such because the Wilshire 5000,
A. beat the market return in all years.

B. beat the market return in most years.

C. exceed the return on index funds.

D. don’t outperform the market.

9.

Swimming pools of cash invested in a portfolio that’s mounted for the lifetime of the fund are referred to as
A. closed-end funds.

B. open-end funds.

C. unit funding trusts.

D. REITS.

E. redeemable belief certificates.

10.

Buyers in closed-end funds who want to liquidate their positions should
A. promote their shares by way of a dealer.

B. promote their shares to the issuer at a reduction to web asset worth.

C. promote their shares to the issuer at a premium to web asset worth.

D. promote their shares to the issuer for web asset worth.

E. maintain their shares to maturity.

11.

Closed finish funds are often issued at a ______ to NAV and subsequently commerce at a __________ to NAV.
A. low cost, low cost

B. low cost, premium

C. premium, premium

D. premium, low cost

E. No constant relationship has been noticed.

12.

At difficulty, providing costs of open-end funds will usually be
A. lower than NAV resulting from hundreds and commissions.

B. larger than NAV resulting from hundreds and commissions.

C. lower than NAV resulting from restricted demand.

D. larger than NAV resulting from extra demand.

E. lower than or larger than NAV with no obvious sample.

13.

Which of the next statements about actual property funding trusts is true?
A. REITs spend money on actual property or loans secured by actual property.

B. REITs elevate capital by borrowing from banks and issuing mortgages.

C. REITs are just like open-end funds, with shares redeemable at NAV.

D. REITs spend money on actual property or loans secured by actual property and lift capital by borrowing from banks and issuing mortgages.

E. All the choices are true.

14.

Which of the next statements about actual property funding trusts is true?
A. REITs could also be fairness trusts or mortgage trusts.

B. REITs are normally extremely leveraged.

C. REITs are just like closed-end funds.

D. REITs could also be fairness trusts or mortgage trusts and are normally extremely leveraged.

E. All the choices are true.