投资学第7版Test Bank答案 04Word文档格式.docx

1、 D） A and B. E） None of the above. D Difficulty: Closed-end funds are sold at the prevailing market price. 3. Which of the following functions do mutual fund companies perform for their investors? A） Record keeping and administration B） Diversification and divisibility C） Professional management D）

2、Lower transaction costs E） All of the above. E Difficulty: Easy Mutual funds are attractive to investors because they offer all of the listed services. 4. Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year-end. W

3、hat was Multiple Mutuals Net Asset Value? A） $18.11 B） $18.81 C） $69.96 D） $7.00 E） $181.07 A Difficulty: （457,000,000 - 17,000,000） / 24,300,000 = $18.11 5. Growth Fund had year-end assets of $862,000,000 and liabilities of $12,000,000. There were 32,675,254 shares in the fund at year-end. What was

4、 Growth Fund A） $28.17 B） $25.24 C） $19.62 D） $26.01 E） $21.56 （862,000,000 - 12,000,000） / 32,675,254 = $26.01 6. Diversified Portfolios had year-end assets of $279,000,000 and liabilities of $43,000,000. If Diversifieds NAV was $42.13, how many shares must have been held in the fund? A） 43,000,000

5、 B） 6,488,372 C） 5,601,709 D） 1,182,203 （$279,000,000 - 43,000,000） / $42.13 = 5,601,708.996. 7. Pinnacle Fund had year-end assets of $825,000,000 and liabilities of $25,000,000. If Pinnacles NAV was $32.18, how many shares must have been held in the fund? A） 21,619,346,92 B） 22,930,546.28 C） 24,860

6、,161.59 D） 25,693,645.25 （$825,000,000 - 25,000,000） / $32.18 = 24,860,161.59. 8. Most actively managed mutual funds, when compared to a market index such as 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） do

7、 not outperform the market E） None of the above is a correct statement. Most actively managed mutual funds fail to equal the return earned by index funds, possibly due to higher transactions costs. 9. Pools of money invested in a portfolio that is fixed for the life of the fund are called A） closed-

8、end funds. B） open-end funds. C） unit investment trusts. D） REITS. E） redeemable trust certificates. Unit investment trusts are funds that invest in a portfolio, often fixed-income securities, and hold it to maturity. 10. Investors in closed-end funds who wish to liquidate their positions must A） se

9、ll their shares through a broker. B） sell their shares to the issuer at a discount to Net Asset Value. C） sell their shares to the issuer at a premium to Net Asset Value. D） sell their shares to the issuer for Net Asset Value. E） hold their shares to maturity. Closed-end fund shares are sold on orga

10、nized exchanges through a broker. 11. Closed end funds are frequently issued at a _ to NAV and subsequently trade at a _ to NAV. A） discount, discount B） discount, premium C） premium, premium D） premium, discount E） No consistent relationship has been observed. Closed-end funds are typically issued

11、at a premium to Net Asset Value and subsequently trade at a discount. 12. At issue, offering prices of open-end funds will often be A） less than NAV due to loads and commissions. B） greater than NAV due to loads and commissions. C） less than NAV due to limited demand. D） greater than NAV due to exce

12、ss demand. E） less than or greater than NAV with no apparent pattern. B Difficulty: Difficult Open-end funds are redeemable on demand at NAV so they should never sell for less than NAV. However, loads and commissions can increase the price above NAV. 13. Which of the following statements about Real

13、Estate Investment Trusts is true? A） REITS invest in real estate or loans secured by real estate. B） REITS raise capital by borrowing from banks and issuing mortgages. C） REITS are similar to open-end funds, with shares redeemable at NAV. D） All of the above are true. E） Both A and B are true. Real

14、Estate Investment Trusts invest in real estate or real-estate-secured loans. They may raise capital from banks and by issuing mortgages. They are similar to closed-end funds and shares are typically exchange traded. 14. In 2004 the proportion of mutual funds specializing in common stocks was A） 21.7

15、% B） 28.0% C） 54.1% D） 73.4% E） 63.5% See Table 4.1. 15. In 2004 the proportion of mutual funds specializing in bonds was A） 15.9% 16. In 2004 the proportion of mutual funds specializing in money market securities was E） 23.6% 17. Management fees and other expenses of mutual funds may include A） fro

16、nt-end loads. B） back-end loads. C） 12b-1 charges. D） A and B only. E） A, B and C. All of the listed expenses may be included in the cost of owning a mutual fund. 18. The Profitability Fund had NAV per share of $17.50 on January 1, 2005. On December 31 of the same year the funds NAV was $19.47. Inco

17、me distributions were $0.75 and the fund had capital gain distributions of $1.00. Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability fund last year? A） 11.26% B） 15.54% C） 16.97% D） 21.26% E） 9.83% R = （$19.47 - 17.50 + .75 + 1.00） / $1

18、7.50 = 21.26% 19. The Yachtsman Fund had NAV per share of $36.12 on January 1, 2005. On December 31 of the same year the funds NAV was $39.71. Income distributions were $0.64 and the fund had capital gain distributions of $1.13. Without considering taxes and transactions costs, what rate of return d

19、id an investor receive on the Yachtsman Fund last year? A） 22.92% B） 17.68% C） 14.39% D） 18.52% E） 14.84% R = （$39.71 - 36.12 + .64 + 1.13） / $36.12 = 14.84% 20. Investors Choice Fund had NAV per share of $37.25 on January 1, 2005. On December 31 of the same year the funds rate of return for the yea

20、r was 17.3%. Income distributions were $1.14 and the fund had capital gain distributions of $1.35. Without considering taxes and transactions costs, what ending NAV would you calculate for Investors Choice? A） $41.20 B） $33.88 C） $43.69 D） $42.03 E） $46.62 .173 = （P - $37.25 + 1.14 + 1.35） / $37.25;

21、 P = $41.20 21. Which of the following is not an advantage of mutual funds? A） They offer a variety of investment styles. B） They offer small investors the benefits of diversification. C） They treat income as passed through to the investor for tax purposes. D） A, B and C are all advantages of mutual

22、 funds. E） Neither A nor B nor C are advantages of mutual funds. A disadvantage of mutual funds is that investment income is passed through for tax purposes and investors may therefore lose the ability to engage in tax management. 22. Which of the following would increase the net asset value of a mu

23、tual fund share, assuming all other things remain unchanged? A） an increase in the number of fund shares outstanding B） an increase in the funds accounts payable C） a change in the funds management D） an increase in the value of one of the funds stocks E） a decrease in the funds 12b-1 fee 23. Which

24、of the following characteristics apply to unit investment trusts? I）Most are invested in fixed-income portfolios.II）They are actively managed portfolios.III）The sponsor pools securities, then sells public shares in the trust.IV）The portfolio is fixed for the life of the fund. A） I and IV B） I and II

25、 C） I, III, and IV D） I, II, and III E） I, II, III, and IV 24. Jargon Rapid Growth is a mutual fund that has traditionally accepted funds from new investors and issued new shares at net asset value. Jeremy Jargon manages the fund himself and has become concerned that its level of assets has become t

26、oo high for his management abilities. He issues a statement that Jargon will no longer accept funds from new investors, but will continue to accept additional investments from current shareholders. Which of the following is true about Jargon Rapid Growth fund? A） Jargon used to be an open-end fund but has no