Historically, on average, do actively-managed mutual funds in the U.S. deliver positive alpha to investors after expenses are accounted for? a Yes b No
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Historically, on average, do actively-managed mutual funds in the U.S. deliver positive alpha to investors after expenses are accounted for?
a Yes
b No
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- Which of the following countries tend to have the lowest mutual fund fees? countries with high investor protection countries with poorly developed capital market countries georaphically close to the United statesWhich mutual fund tends to be invested in companies with relatively low P/E ratios and good growth potential to its peers? A : Growth and income fund B : Value fund C : Growth fund D : Balanced fundIn the managed funds market, large institutional investors are positioned: A) in the retail market. B) in the wholesale market. C) somewhere between the retail and wholesale markets. D) in the same group as private client investors.
- What is the best explanation for the recent increase in assets held by mutual funds and other investment companies? Stock market increases Lower tax rate on mutual funds Increased flow of funds into employer-sponsored plans and IRAs Higher savings rateWhich of the following is not considered part of M2? a. money market mutual fund shares b. large time deposits of more than $100,000 c. small time deposits of less than $100,000 d. savings depositsWhy have the FRANKLIN ASIAN EQUITY FUND- GROWTH funds performed so badly? Consider the following perspectives: o Political o Macro-Economic o Sector o Internal Factors and policies
- Which of the following is FALSE about the differences between ETFs and Mutual Funds? Select one or more: a. ETFs were introduced before Mutual Funds b. Both ETFs and Mutual Funds can be traded just like stocks c. The Mutual Fund Industry is much larger than the ETF industry d. Mutual Funds fees are typically higher than ETF fees.‘To capture investor interest, Exchange Traded Funds (ETF) have become the latest market innovation. Since 1990, they have been actively traded in a form of basket of securities.’ Assess the main features of exchange traded funds (EFTs) drawing on their advantages and disadvantages as the cause of their popularity. Advantages Diversification Can be traded like stocks Lower fees for passively managed ETFs Reinvestment of dividends No minimum investment amount needed Lower capital gains compared to actively managed mutual funds. Discounts and premium prices are lower Disadvantages Lower levels of diversification Overkills intraday pricing Costs could be higher than mutual funds-broker fees Dividend yields are generally low. Returns on leveraged ETFs can be skewedHistorically, index funds have had _________ thanmost actively managed mutual funds.a. higher feesb. less diversificationc. larger tax burdensd. better returns
- A hedge fund charges the common 2 plus 20% fee structure, i.e. 2% management fee and 20% of any net (after management fees) profits. A pension fund invests in the hedge fund. In addition to the usual market risk from investing, what type of risk is faced by the pension fund manager investing in the hedge fund? Explain with respect to the hedge fund manager’s incentives.JPMorgan Diversified Fund (JDVSX) is an investment that seeks to provide a high return from a diversified portfolio of equities and fixed-income investments. Drawing on a variety of analytical tools, the fund's adviser allocates assets from various types of equities and fixed income investments, based on the following allocation model: 30%-75% U.S. equity securities, including small, medium and large-cap securities; 25%-50% U.S. and foreign fixed income securities; and 0%-30% foreign equity securities. According to JPMorgan Funds statistics report data as of 31st December 2015, the fund strategic benchmark distributions were as follows: Strategic distribution U.S Equities 45% International Equities 20% Fixed Income 35% - Describe the risks of this type of funds, and explain the differences in risk between this institution and Microsoft. Instructions: 1) Assume that the value of the fund is $ 100 million. 2) You should calculate the…What are the advantages of investing via international mutual funds?
