Exam 22: Mutual Fund: Objectives, Types, NAV, Turnover Ratio, and More

If the yield on mortgage-backed securities was abnormally high compared to Treasury bonds,a hedge fund pursuing a relative value strategy would ______.

Hedge fund incentive fees are essentially

Hedge funds differ from mutual funds in terms of _____.

Pools of money invested in a portfolio that is fixed for the life of the fund are called

A hedge fund pursuing a ______ strategy is trying to exploit relative mispricing within a market,but is hedged to avoid taking a stance on the direction of the broad market.

Regarding hedge fund incentive fees,hedge fund managers ______ if the portfolio return is very large and ______ if the portfolio return is negative.

______ bias arises when the returns of unsuccessful funds are left out of the sample.

Investors' Choice Fund had NAV per share of $37.25 on January 1,2001.On December 31 of the same year the fund's rate of return for the year was 17.3%.Income distributions were $1.14 and the fund had capital gain distributions of $1.35.Without considering taxes and transactions costs,what ending NAV would you calculate for Investors' Choice?

______ must periodically provide the public with information on portfolio composition.

The prudent man law requires _________.

______ are the dominant form of investing in securities markets for most individuals and ______ have enjoyed far greater growth rate in the last decade.

Which of the following functions do mutual fund companies perform for their investors?