Questions from General Investment


Q: How important is the general behavior of the market in affecting the

How important is the general behavior of the market in affecting the price performance of mutual funds? Explain. Does the future behavior of the market matter in the selection process? Explain.

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Q: What is the major/dominant type of closed-end fund

What is the major/dominant type of closed-end fund? How do CEFs differ from open-end funds?

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Q: What is a stock spin-off? In very general terms

What is a stock spin-off? In very general terms, explain how a stock spin-off works. Are these spin-offs of any value to investors? Explain.

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Q: What role, if any, do an investor’s personal characteristics play

What role, if any, do an investor’s personal characteristics play in determining portfolio policy? Explain.

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Q: How do you find the intrinsic value of a call? Of

How do you find the intrinsic value of a call? Of a put? Does an out-of-the-money option have intrinsic value?

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Q: Several months ago, Deb Forrester received a substantial sum of money

Several months ago, Deb Forrester received a substantial sum of money from the estate of her late aunt. Deb initially placed the money in a savings account because she was not sure what to do with it....

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Q: Identify three potential sources of return to mutual fund investors and briefly

Identify three potential sources of return to mutual fund investors and briefly discuss how each could affect total return to shareholders. Explain how the discount or premium of a closed-end fund can...

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Q: Discuss the various types of risk to which mutual fund shareholders are

Discuss the various types of risk to which mutual fund shareholders are exposed. What is the major risk exposure of mutual funds? Are all funds subject to the same level of risk? Explain.

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Q: What are the advantages and disadvantages of mutual fund ownership?

What are the advantages and disadvantages of mutual fund ownership?

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Q: Briefly describe how a mutual fund is organized. Who are the

Briefly describe how a mutual fund is organized. Who are the key players in a typical mutual fund organization?

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