Questions from General Investment

Q: Are the following statements true or false? If false, correct

Are the following statements true or false? If false, correct them. a. An investor who wishes to sell shares immediately should ask his or her broker to enter a limit order. b. The ask price is less t...

Q: Where would an illiquid security in a developing country most likely trade

Where would an illiquid security in a developing country most likely trade? a. Broker markets. b. Electronic crossing networks. c. Electronic limit-order markets.

Q: Dée Trader opens a brokerage account and purchases 300 shares of Internet

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%...

Q: Monty Frost’s tax-deferred retirement account is invested entirely in equity

Monty Frost’s tax-deferred retirement account is invested entirely in equity securities. Because the international portion of his portfolio has performed poorly in the past, he has reduced his interna...

Q: Old Economy Traders opened an account to short-sell 1,

Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest.) A year lat...

Q: Consider the following limit-order book for FinTrade stock. The

Consider the following limit-order book for FinTrade stock. The last trade in the stock occurred at a price of $50. a. If a market buy order for 100 shares comes in, at what price will it be filled? b...

Q: Would you expect a typical open-end fixed-income mutual

Would 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?

Q: A closed-end fund starts the year with a net asset

A closed-end fund starts the year with a net asset value of $12.00. By year-end, NAV equals $12.10. At the beginning of the year, the fund was selling at a 2% premium to NAV. By the end of the year, t...

Q: a. Impressive Fund had excellent investment performance last year, with

a. Impressive Fund had excellent investment performance last year, with portfolio returns that placed it in the top 10% of all funds with the same investment policy. Do you expect it to be a top perfo...

Q: You purchased 1,000 shares of the New Fund at a

You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning of the year. You paid a front-end load of 4%. The securities in which the fund invests increase in value by 12%...