投资学第7版TestBank答案04之欧阳育创编.docx

1、投资学第7版TestBank答案04之欧阳育创编Multiple Choice Questions时间：2021.02.04创作：欧阳育 1. Which one of the following statements regarding open-end mutual funds is false? A) The funds redeem shares at net asset value. B) The funds offer investors professional management. C) The funds offer investors a guaranteed rate

2、of return. D) B and C. E) A and B. Answer: C Difficulty: Moderate Rationale: No investment offers a guaranteed rate of return. 2. Which one of the following statements regarding closed-end mutual funds is false? A) The funds always trade at a discount from NAV. B) The funds redeem shares at their ne

3、t asset value. C) The funds offer investors professional management. D) A and B. E) None of the above. Answer: D Difficulty: Moderate Rationale: 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) Reco

4、rd keeping and administration B) Diversification and divisibility C) Professional management D) Lower transaction costs E) All of the above. Answer: E Difficulty: Easy Rationale: Mutual funds are attractive to investors because they offer all of the listed services. 4. Multiple Mutual Funds had year

5、-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year-end. What was Multiple Mutuals Net Asset Value? A) $18.11 B) $18.81 C) $69.96 D) $7.00 E) $181.07 Answer: A Difficulty: Moderate Rationale: (457,000,000 - 17,000,000) / 24,300,000 = $18.11 5.

6、 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 Growth Funds Net Asset Value? A) $28.17 B) $25.24 C) $19.62 D) $26.01 E) $21.56 Answer: D Difficulty: Moderate Rationale: (862,000,000 - 12,000,000) / 32,67

7、5,254 = $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 B) 6,488,372 C) 5,601,709 D) 1,182,203 E) None of the above. Answer: C Difficulty: Moderate Rati

8、onale: ($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) 24,860,161.59 D) 25,693,645.25 E) None

9、of the above. Answer: C Difficulty: Moderate Rationale: ($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 t

10、he return on index funds. D) do not outperform the market E) None of the above is a correct statement. Answer: D Difficulty: Easy Rationale: 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 p

11、ortfolio that is fixed for the life of the fund are called A) closed-end funds. B) open-end funds. C) unit investment trusts. D) REITS. E) redeemable trust certificates. Answer: C Difficulty: Easy Rationale: Unit investment trusts are funds that invest in a portfolio, often fixed-income securities,

12、and hold it to maturity. 10. Investors in closed-end funds who wish to liquidate their positions must A) sell 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 t

13、o the issuer for Net Asset Value. E) hold their shares to maturity. Answer: A Difficulty: Moderate Rationale: Closed-end fund shares are sold on organized 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

14、B) discount, premium C) premium, premium D) premium, discount E) No consistent relationship has been observed. Answer: D Difficulty: Moderate Rationale: Closed-end funds are typically issued at a premium to Net Asset Value and subsequently trade at a discount. 12. At issue, offering prices of open-e

15、nd 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 excess demand. E) less than or greater than NAV with no apparent pattern. Answer: B Difficulty: Difficult Rationa

16、le: 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 Estate Investment Trusts is true? A) REITS invest in real estate or loans secured by real

17、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. Answer: E Difficulty: Moderate Rationale: Real Estate Investment Trusts invest in real estate o

18、r 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% B) 28.0% C) 54.1% D) 73.4% E) 63.5% Answer: C

19、Difficulty: Moderate Rationale: See Table 4.1. 15. In 2004 the proportion of mutual funds specializing in bonds was A) 15.9% B) 28.0% C) 54.1% D) 73.4% E) 63.5% Answer: A Difficulty: Moderate Rationale: See Table 4.1. 16. In 2004 the proportion of mutual funds specializing in money market securities

20、 was A) 21.7% B) 28.0% C) 54.1% D) 73.4% E) 23.6% Answer: C Difficulty: Moderate Rationale: See Table 4.1. 17. Management fees and other expenses of mutual funds may include A) front-end loads. B) back-end loads. C) 12b-1 charges. D) A and B only. E) A, B and C. Answer: E Difficulty: Easy Rationale:

21、 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. Income distributions were $0.75 and the fund had capital gain distributions of $1.00.

22、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% Answer: D Difficulty: Moderate Rationale: R = ($19.47 - 17.50 + .75 + 1.00) / $17.50 = 21.26% 19. The Yachtsman Fund had

23、 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 did an investor receive on the Yachtsman

24、Fund last year? A) 22.92% B) 17.68% C) 14.39% D) 18.52% E) 14.84% Answer: E Difficulty: Moderate Rationale: 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 y

25、ear 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 Answer: A Difficulty: Moderate Rationale:

26、 .173 = (P - $37.25 + 1.14 + 1.35) / $37.25; 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

27、. D) A, B and C are all advantages of mutual funds. E) Neither A nor B nor C are advantages of mutual funds. Answer: C Difficulty: Easy Rationale: 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

28、 management. 22. Which of the following would increase the net asset value of a mutual 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 th

29、e value of one of the funds stocks E) a decrease in the funds 12b-1 fee Answer: D Difficulty: Easy 23. Which 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

30、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 C) I, III, and IV D) I, II, and III E) I, II, III, and IV Answer: C Difficulty: Moderate 24. Jargon Rapid Growth is a mutual fund that has traditionally accepted funds from new investors and

31、issued new shares at net asset value. Jeremy Jargon manages the fund himself and has become concerned that its level of assets has become too 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 now become a closed-e