Questions from General Investment

Q: What’s the difference between current yield and yield to maturity? Between

What’s the difference between current yield and yield to maturity? Between promised yield and realized yield? How does YTC differ from YTM?

Q: Briefly describe the term bond equivalent yield. Is there any difference

Briefly describe the term bond equivalent yield. Is there any difference between promised yield and bond equivalent yield? Explain.

Q: What is a mutual fund? Discuss the mutual fund concept,

What is a mutual fund? Discuss the mutual fund concept, including the importance of diversification and professional management.

Q: What are fund families? What advantages do fund families offer investors

What are fund families? What advantages do fund families offer investors? Are there any disadvantages?

Q: Briefly describe some of the investor services provided by mutual funds.

Briefly describe some of the investor services provided by mutual funds. What are automatic reinvestment plans, and how do they differ from automatic investment plans?

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

How important is the 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.

Q: What is the dominant type of closed-end fund? How

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

Q: Kate Berry will not invest unless she can earn at least an

Kate Berry will not invest unless she can earn at least an 8% return. She is evaluating an investment opportunity that requires an initial outlay of $2,500 and promises to return $5,000 in eight years...

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

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 ca...

Q: Discuss the types of risk that mutual fund shareholders face. What

Discuss the types of risk that mutual fund shareholders face. What is the major risk exposure of mutual funds? Are all funds subject to equal risk? Explain.