INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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Question
Chapter 4, Problem 2PS
Summary Introduction
To determine:
Introduction:
A Unit Investment trust refers to the investment company which provide fixed portfolio that comprises of bonds and stock in the form of redeemable units for a particular time period to its investor. This helps an investor to earn dividend income and capital appreciation. Closed end funds on the other hand, are generally sold in the secondary market and they are not redeemed by the fund manager. Due to such an arrangement the trading of shares might take place at a discount or substantial premium with respect to its NAV.
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Chapter 4 Solutions
INVESTMENTS (LOOSELEAF) W/CONNECT
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- Which of the following is an example of direct finance? Select one:investors buy shares in a mutual fundA pension fund manager buys a security in the secondary marketinvestors buy shares in a mutual fundNone of the answers are correctcompany buy security in a secondary marketarrow_forwardWould you expect a typical open-end fixed-income mutual fund to have higher or lower operating expenses than a fixed-income unit investment trust? Why?arrow_forwardCompare bonds and shares to each other. In which of these are people more likely to invest their money?arrow_forward
- Describe, compare, and contrast these types of investments: GICs, RRSPs, real estate, mutual funds, hedge funds, stocks and bondsarrow_forwardplease give me the corret answer Which of the following is not a type of managed investment company? unit investment trusts open-end funds closed-end funds hedge fundsarrow_forwardAdvantages of investing in mutual funds compared to individual securities include all of the following EXCEPT: Group of answer choices -Increased diversification. -Difficulty of comparison -Professional management -Government oversight. -Service and convenience.arrow_forward
- Explain two major reason why an investor would use a managed fund instead of investing the money in shares on his or her own. Explain why/how these are expected to benefit the investor.arrow_forwardWhat are the pros and cons of investing into the following assets? Make comparison. a. A unit trust b. A closed-end fund? c. A stock of a companyarrow_forwardWhat is a mutual fund? How does mutual fund differ from money market fund? need this answer asaparrow_forward
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