Exam 12: Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

The following returns were earned last year: Fund A,10%,Fund B,20%,the overall market,11%.Fund A's beta was 0.8 while Fund B's was 2.0.Therefore,both funds would have been good investments.

Global and international funds invest in foreign securities.

ETFs are more tax efficient than mutual funds.

Fund switching allows you to transfer funds from one mutual fund family to another,as long as both families are approved by the SEC.

The Mark IV Fund had a rate of return of 21% last year.If its beta weight was +1.5 and if the return on the overall market was 12%,its risk adjusted rate of return,RAROR,is

A portfolio plan should

For a fee a HOLR can be converted into the underlying shares.

A constant ratio plan re-balances a portfolio to predetermined target weights.

In constructing portfolios,investors are advised to consider intangible assets but ignore tangible assets.

An advantage of exchange-traded funds is they occasionally can be purchased at significant discounts to book value.

A sector fund invests in

Investment clubs generally offer the possibility of diversification.

In which of these funds does the portfolio of assets generally remain unchanged?

Investors can use margin to acquire exchange-traded funds.

One disadvantage of a limited partnership is that it is usually difficult to sell your partnership interest.

A unit investment trust differs from a mutual fund in that

A disadvantage of an exchange-traded fund is their frequent portfolio turnover and high operating costs.

Which item below is not a broad market exchange-traded fund?

The net asset value (NAV)of a mutual fund is the total value of the securities it owns (minus any liabilities)divided by the number of shares issued by the fund.

A constant ratio plan adjusts a portfolio by