【正文】 e following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Dow Jones Industrials should chooseA.SPY.B.DIA.C..D.IWM.E.VTI.56.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Nasdaq 100 should chooseA.SPY.B.DIA.C..D.IWM.E.VTI.57.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Russell 2000 should chooseA.SPY.B.DIA.C..D.IWM.E.VTI.58.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Wilshire 5000 should chooseA.SPY.B.DIA.C..D.IWM.E.VTI.59.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the MSCI Japan Index should chooseA.SPY.B.EWJ.C..D.IWM.E.VTI.60.Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the MSCI France Index should chooseA.SPY.B.EWJ.C.EWQ.D.IWM.E.VTI.61.A mutual fund had average daily assets of $ billion in 2012. The fund sold $600 million worth of stock and purchased $700 million worth of stock during the year. The fund39。s turnover ratio isA.%.B.12%.C.15%.D.25%.E.20%.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。s turnover ratio isA.%.B.12%.C.15%.D.25%.E.20%.63.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。s turnover ratio isA.%.B.22%.C.15%.D.45%.E.20%.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。s turnover ratio isA.%.B.%.C.%.D.%.E.%.65.You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a frontend load of %. If the securities in which the fund invested increased in value by 11% during the year, and the fund39。s expense ratio was %, your return if you sold the fund at the end of the year would beA.%.B.%.C.%.D.%.66.You purchased shares of a mutual fund at a price of $12 per share at the beginning of the year and paid a frontend load of %. If the securities in which the fund invested increased in value by 9% during the year, and the fund39。s expense ratio was %, your return if you sold the fund at the end of the year would beA.%.B.%.C.%.D.%.67.You purchased shares of a mutual fund at a price of $17 per share at the beginning of the year and paid a frontend load of %. If the securities in which the fund invested increased in value by 12% during the year, and the fund39。s expense ratio was %, your return if you sold the fund at the end of the year would beA.%.B.%.C.%.D.%.68.You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a frontend load of %. If the securities in which the fund invested increased in value by 10% during the year, and the fund39。s expense ratio was %, your return if you sold the fund at the end of the year would beA.%.B.%.C.%.D.%.E.None of the optionsShort Answer Questions69.List and describe the more important types of mutual funds according to their investment policy and use.70.Discuss the taxation of mutual fund ine.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?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 KeyMultiple Choice Questions1.Which one of the following statements regarding openend 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 of return.D.The funds offer investors professional management and a guaranteed rate of return.E.The funds redeem shares at net asset value and offer investors professional management.Mutual funds do not offer a guaranteed rate of return.AACSB: AnalyticBlooms: RememberDifficulty: IntermediateTopic: Mutual Funds2.Which one of the following statements regarding closedend mutual funds is false?A.The funds always trade at a discount from NAV.B.The funds redeem shares at their net asset value.C.The funds offer investors professional management.D.The funds always trade at a discount from NAV and redeem shares at their net asset value.E.None of the optionsClosedend funds are sold at the prevailing market price.AACSB: AnalyticBlooms: RememberDifficulty: IntermediateTopic: Mutual Funds3.Which of the following functions do investment panies perform for their investors?A.Record keeping and administrationB.Diversification and divisibilityC.Professional managementD.Lower t