Questions from Financial Markets

Q: Unhappy with the results, the new investor then sells the 389

Unhappy with the results, the new investor then sells the 389.09 shares. What is his profit? What is the new fund value?

Q: A mutual fund charges a 5% upfront load plus reports an

A mutual fund charges a 5% upfront load plus reports an expense ratio of 1.34%. If an investor plans on holding a fund for 30 years, what is the average annual fee, as a percent, paid by the investors...

Q: A mutual fund offers “A” shares, which have a

A mutual fund offers “A” shares, which have a 5% upfront load and an expense ratio of 0.76%. The fund also offers “B” shares, which have a 3% back-end load and an expense ratio of 0.87%. Which shares...

Q: What is a load fund?

What is a load fund?

Q: How are deferred loads usually structured?

How are deferred loads usually structured?

Q: What distinguishes a hedge fund from other types of mutual funds?

What distinguishes a hedge fund from other types of mutual funds?

Q: What prompted the growth of money market mutual funds?

What prompted the growth of money market mutual funds?

Q: If there is a decline in interest rates, which would you

If there is a decline in interest rates, which would you rather be holding, long-term bonds or short-term bonds? Why? Which type of bond has the greater interest-rate risk?

Q: What do 12b-1 fees pay, and what is the

What do 12b-1 fees pay, and what is the maximum amount these fees can be?

Q: What is the primary source of the conflict of interest between shareholders

What is the primary source of the conflict of interest between shareholders and investment managers?