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Question
A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year-end asset values. If there are no distributions, what is the end-of-year NAV for the fund?A. $50
B. $55.44
C. $56.12
D. $54.55
Answer
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Related questions
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Q:
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I. WEBS can be shorted.
II. WEBS trade continuously on the AMEX.
III. WEBS are passively managed.
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B. II and III only
C. I and III only
D. I, II, and III
Q:
The major participants who directly purchase securities in the capital markets of other countries are predominantly ____________.
A. large institutional investors
B. individual investors
C. government agencies
D. central banks
Q:
In the PRS financial risk ratings, the United States rates poorly because of the U.S. ________.
I. Large budget deficit
II. Large trade deficit
III. Large amount of total debt
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Q:
The yen-per-dollar spot rate is 104. The yen-per-dollar forward rate is 107. If the U.S. risk-free rate is 2.4%, what is the likely yen risk-free rate?
A. 1.24%
B. 2.35%
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Q:
The risk-free rate in the United States is 4%, and the risk-free rate in Japan is 1.2%. If the spot rate of yen to dollars is 105, what is the likely yen-per-dollar forward rate?
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Q:
Passive investors with well-diversified international portfolios _________.
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B. can expect very large diversification gains from their international investing
C. do not need to be concerned with hedging exposure to foreign currencies
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Q:
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A. home-country bias
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C. active management
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Q:
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A. default risk
B. foreign exchange risk
C. market risk
D. political risk
Q:
EAFE stands for _______.
A. Equity and Foreign Exchange
B. Europe, Australasia, Far East
C. Europe, Asian, Foreign Exchange
D. Europe, American, Far East
Q:
An investor would want to __________ to exploit an expected fall in interest rates.
A. sell S&P 500 Index futures
B. sell Treasury-bond futures
C. buy Treasury-bond futures
D. buy wheat futures
Q:
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Q:
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Q:
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Q:
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Q:
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A. 10
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Q:
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Q:
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Q:
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Q:
Which one of the following will increase the value of a put option?
A.
a decrease in the exercise price
B.
a decrease in time to expiration of the put
C.
an increase in the volatility of the underlying stock
D.
Q:
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Q:
A futures contract __________.
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Q:
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A. marking to market
B. the convergence property
C. the open interest
D. the triple witching hour
Q:
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A. daily limit
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C. maintenance margin
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Q:
Margin must be posted by ________.
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B. sellers of futures contracts only
C. both buyers and sellers of futures contracts
D. speculators only