Questions from General Investment

Q: The New Fund had average daily assets of $2.2

The New Fund had average daily assets of $2.2 billion in the past year. The fund sold $400 million and purchased $500 million worth of stock during the year. What was its turnover ratio?

Q: The New Fund (from Problem 22) had an expense ratio

The New Fund (from Problem 22) had an expense ratio of 1.1%, and its management fee was 0.7%. a. What were the total fees paid to the fund’s investment managers during the year? b. What were the oth...

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%...

Q: The Investments Fund sells Class A shares with a front-end

The Investments Fund sells Class A shares with a front-end load of 6% and Class B shares with 12b1 fees of 0.5% annually as well as back-end load fees that start at 5% and fall by 1% for each full yea...

Q: George Stephenson’s current portfolio of $2 million is invested as follows

George Stephenson’s current portfolio of $2 million is invested as follows: Stephenson soon expects to receive an additional $2 million and plans to invest the entire amount in an ex...

Q: What is a 12b-1 fee?

What is a 12b-1 fee?

Q: What are some differences between a unit investment trust and a closed

What are some differences between a unit investment trust and a closed-end fund?

Q: What are the advantages and disadvantages of exchange-traded funds versus

What are the advantages and disadvantages of exchange-traded funds versus mutual funds?

Q: What are some differences between hedge funds and mutual funds?

What are some differences between hedge funds and mutual funds?

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?