【正文】 g SEC policy by refusing to accept new investors.Equity fundsB.Global fundsamounts invested in equity and fixedine mutual funds.B.partnerships of investors that pool their funds, which are then managed for a fee.I and IVB.I, II, III, and IVfrontend load fee.B.structured fee.%D.%D.%D.%D.%D.s net asset value?$C.38.A mutual fund had yearend assets of $250,000,000 and liabilities of $4,000,000. There were 3,750,000 shares in the fund at yearend. What was the mutual fund39。$B.$A.$E.$D.8,601,709D.18,601,742D.A.9,165,414E.A.9,165,414E.%D.s NAV was $. Ine distributions were $ and the fund had capital gain distributions of $. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?%C.47.A mutual fund had NAV per share of $ on January 1, 2012. On December 31 of the same year the fund39。$B.$A.$E.$D.s rate of return for the year was %. Ine distributions were $ and the fund had capital gain distributions of $. Without considering taxes and transactions costs, what ending NAV would you calculate?$C.51.Differences between hedge funds and mutual funds are thathedge funds are typically open only to wealthy or institutional investors.C.52.Of the following types of mutual funds, an investor who wishes to invest in a diversified portfolio of stocks worldwide (including the .) should chooseglobal funds.C.regional funds.D..D..D..D..D..D..D.EWQ.D.s turnover ratio is12%.C.62.A mutual fund had average daily assets of $ billion in 2012. The fund sold $500 million worth of stock and purchased $600 million worth of stock during the year. The fund39。%.B.20%.A.45%.E.%.D.s expense ratio was %, your return if you sold the fund at the end of the year would be%.C.s expense ratio was %, your return if you sold the fund at the end of the year would be%.C.s expense ratio was %, your return if you sold the fund at the end of the year would be%.C.s expense ratio was %, your return if you sold the fund at the end of the year would be%.C.70.Discuss the taxation of mutual fund ine.72.Discuss the consistency of mutual fund performance results, as studied by Goetzmann and Ibbotson (1994) and Malkiel (1995).Chapter 04 Mutual Funds and Other Investment Companies Answer KeyThe funds offer investors a guaranteed rate of return.D.2.Which one of the following statements regarding closedend mutual funds is false?The funds redeem shares at their net asset value.C.AACSB: AnalyticBlooms: RememberDifficulty: IntermediateTopic: Mutual FundsRecord keeping and administrationB.All of the optionsInvestment panies are attractive to investors because they offer all of the listed services.$D.5.Growth Fund had yearend assets of $862,000,000 and liabilities of $12,000,000. There were 32,675,254 shares in the fund at yearend. What was Growth Fund39。$B.$($862,000,000 12,000,000)/32,675,254 = $.5,601,709D.s NAV was $, how many shares must have been held in the fund?22,930,C.8.Most actively managed mutual funds, when pared to a market index such as the Wilshire 5000,beat the market return in most years.C.9.Pools of money invested in a portfolio that is fixed for the life of the fund are calledopenend funds.C.AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: Investment Organizationssell their shares through a broker.B.hold their shares to maturity.Closedend fund shares are sold on organized exchanges through a broker.A.premium, discountE.less than NAV due to limited demand.D.13.Which of the following statements about real estate investment trusts is true?REITs raise capital by borrowing from banks and issuing mortgages.C.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment OrganizationsREITs may be equity trusts or mortgage trusts.B.All of the options are true.Real estate investment trusts invest in real estate or realestatesecured loans. They may raise capital from banks and by issuing mortgages. They are similar to closedend funds and shares are typically exchange traded.A.They invest in mercial paper, CDs, and repurchase agreements, and they usually offer 。They usually offer checkwriting privileges.C.15.Which of the following statements about money market mutual funds is true?REITs are similar to closedend funds.D.REITs invest in real estate or loans secured by real estate and raise capital by borrowing from banks and issuing mortgages.E.A.less than or greater than NAV with no apparent pattern.Openend funds are redeemable on demand at NAV so they should never sell for less than NAV. However, loads and missions can increase the price above NAV.less than NAV due to loads and missions.B.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment Organizationsdiscount, premiumC.11.Closed end funds are frequently issued at a ______ to NAV and subsequently trade at a __________ to NAV.sell their shares to the issuer at a premium to net asset value.D.REITS.E.A.do not outperform the market.Most actively managed mutual funds fail to equal the return earned by index funds, possibly due to higher transactions costs.A.25,693,($825,000,000 25,000,000)/$ = 24,860,.A.AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Mutual Fu