【正文】 They invest in mercial paper, CDs, and repurchase agreements, and they usually offer 。They usually offer checkwriting privileges.C.A.15.Which of the following statements about money market mutual funds is true?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.REITs are similar to closedend funds.D.REITs may be equity trusts or mortgage trusts.B.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment OrganizationsREITs invest in real estate or loans secured by real estate and raise capital by borrowing from banks and issuing mortgages.E.REITs raise capital by borrowing from banks and issuing mortgages.C.A.13.Which of the following statements about real estate investment trusts is true?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 limited demand.D.less than NAV due to loads and missions.B.AACSB: AnalyticBlooms: UnderstandDifficulty: IntermediateTopic: Investment Organizationspremium, discountE.discount, premiumC.A.11.Closed end funds are frequently issued at a ______ to NAV and subsequently trade at a __________ to NAV.hold their shares to maturity.Closedend fund shares are sold on organized exchanges through a broker.sell their shares to the issuer at a premium to net asset value.D.sell their shares through a broker.B.AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: Investment OrganizationsREITS.E.openend funds.C.A.9.Pools of money invested in a portfolio that is fixed for the life of the fund are calleddo not outperform the market.Most actively managed mutual funds fail to equal the return earned by index funds, possibly due to higher transactions costs.beat the market return in most years.C.A.8.Most actively managed mutual funds, when pared to a market index such as the Wilshire 5000,25,693,($825,000,000 25,000,000)/$ = 24,860,.22,930,C.A.s NAV was $, how many shares must have been held in the fund?AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Mutual Funds5,601,709D.43,000,000B.6.Diversified Portfolios had yearend assets of $279,000,000 and liabilities of $43,000,000. If Diversified39。$($862,000,000 12,000,000)/32,675,254 = $.$D.$B.5.Growth Fund had yearend assets of $862,000,000 and liabilities of $12,000,000. There were 32,675,254 shares in the fund at yearend. What was Growth Fund39。$($457,000,000 17,000,000)/24,300,000 = $.$D.$B.4.Multiple Mutual Funds had yearend assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at yearend. What was Multiple Mutual39。All of the optionsInvestment panies are attractive to investors because they offer all of the listed services.Professional managementD.Record keeping and administrationB.AACSB: AnalyticBlooms: RememberDifficulty: IntermediateTopic: Mutual FundsThe funds always trade at a discount from NAV and redeem shares at their net asset value.E.The funds redeem shares at their net asset value.C.A.2.Which one of the following statements regarding closedend mutual funds is false?The funds redeem shares at net asset value and offer investors professional management.Mutual funds do not offer a guaranteed rate of return.The funds offer investors a guaranteed rate of return.D.The funds redeem shares at net asset value.B.Multiple Choice QuestionsChapter 04 Mutual Funds and Other Investment Companies Answer Key72.Discuss the consistency of mutual fund performance results, as studied by Goetzmann and Ibbotson (1994) and Malkiel (1995).71.What is an exchangetraded fund? Give two examples of specific ETFs. What are some advantages they have over ordinary openend mutual funds? What are some disadvantages?70.Discuss the taxation of mutual fund ine.69.List and describe the more important types of mutual funds according to their investment policy and use.%.E.%.C.A.s expense ratio was %, your return if you sold the fund at the end of the year would be%.%.C.A.s expense ratio was %, your return if you sold the fund at the end of the year would be%.%.C.A.s expense ratio was %, your return if you sold the fund at the end of the year would be%.%.C.A.s expense ratio was %, your return if you sold the fund at the end of the year would be%.%.D.%.B.64.A mutual fund had average daily assets of $ billion in 2012. The fund sold $ billion worth of stock and purchased $ billion worth of stock during the year. The fund39。45%.E.22%.C.A.s turnover ratio is20%.15%.D.%.B.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。25%.E.12%.C.A.s turnover ratio isVTI.EWQ.D.SPY.B.VTI..D.SPY.B.VTI..D.SPY.B.VTI..D.SPY.B.VTI..D.SPY.B.VTI..D.SPY.B.VTI..D.SPY.B.54.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that track