11.You are going to invest in a closed-end mutual fund and are told that the net asset value of the fund is $20.40, and the share price is $18.20. What is the discount you would receive or the premium that you would pay?

A)   0.1209.

B)   -0.1209.

C)   -0.1078.

D)   0.1078.

12.which of the following statements about investment companies is least accurate?

A)   Generally the investment advisory firm initiating the fund will also act as the fund's investment management company.

B)   The investment company's board of directors hires an investment management company to select securities, manage the portfolio, and handle administrative duties.

C)   The typical management fee is 1/4 to 1 percent of the fund's net asset value.

D)   Investment companies are generally wholly owned subsidiaries of the investment advisory firm that creates them.

.

13.Jillian Best is choosing between two mutual funds. Fund A has a front-end load of 4 percent, a net asset value (NAV) of $60.00, and an expected return of 13.0 percent. Fund B has a redemption fee of 1.5 percent, a NAV of $27, and an expected return of 10 percent. Jillian will invest $50,000 in either fund. Which of the following statements is most accurate if Jillian has a 6-month holding period? The:

A)   investor is better off with the redemption fee fund by $592.50.

B)   investments are equal.

C)   investor is better off with the front-end load fund by $120.00.

D)   investor is better off with the redemption fee fund by $712.50.

The net asset value of a closed-end mutual fund is $11.20, and the share price is $10.00. The discount or premium is closest to:

A)   12.0% premium.

B)   10.7% discount.

C)   12.0% discount.

D)   10.7% premium.

14.Bill Lynch, CFA, is a branch manager for a brokerage firm. He is reviewing a set of slides for a sales presentation that one of his subordinates will deliver next week. In a section that explains the nature of the various fees charged by investment companies, Lynch finds slides that state the following:

Slide 8: Fees charged by investment companies are a trade-off from the investor’s point of view. Lower fees will subtract less from the investor’s rate of return, but higher fees give portfolio managers greater incentives to achieve higher returns.

Slide 12: When choosing between a fund’s share classes, the investor should select the class with the lowest total annual fees.

Should Lynch agree or disagree with the statements on these two slides?

A)                                        Disagree       Disagree

B)                                        Agree    Agree

C)                                        Agree    Disagree

D)                                        Disagree       Agree

15.A sales commission charged by an investment company at the time of redemption is called a:

A)   back-end load.

B)   front-end load.

C)   distribution fee.

D)   12b-1 fee.

16.Based on the following information, what is the net asset value (NAV) per share. There are currently no expenses and no load.

A)   $13.26.

B)   $27.03.

C)   $15.96.

D)   $27.03.

17.An investor is contemplating buying a load fund versus a no load mutual fund. She is trying to figure out the actual amount she will have to spend on the load fund. The shares have a net asset value (NAV) of $34.50 and a load of 5.2 percent. Determine which type of fund will always have a share price equal to the NAV and the price she will pay for the load fund.

         Fund            Offering Price

A)                closed-end       $34.50

B)                closed-end       $36.39

C)                open-end         $34.50

D)                open-end          $36.39

答案和详解如下：

11.You are going to invest in a closed-end mutual fund and are told that the net asset value of the fund is $20.40, and the share price is $18.20. What is the discount you would receive or the premium that you would pay?

A)   0.1209.

B)   -0.1209.

C)   -0.1078.

D)   0.1078.

The correct answer was C)

18.20 - 20.40
20.40

12.Which of the following statements about investment companies is least accurate?

A)   Generally the investment advisory firm initiating the fund will also act as the fund's investment management company.

B)   The investment company's board of directors hires an investment management company to select securities, manage the portfolio, and handle administrative duties.

C)   The typical management fee is 1/4 to 1 percent of the fund's net asset value.

D)   Investment companies are generally wholly owned subsidiaries of the investment advisory firm that creates them.

The correct answer was D)

Investment companies are owned by individual investors. For example, individuals who purchase shares in a mutual fund are the "owners" of that fund.

13.Jillian Best is choosing between two mutual funds. Fund A has a front-end load of 4 percent, a net asset value (NAV) of $60.00, and an expected return of 13.0 percent. Fund B has a redemption fee of 1.5 percent, a NAV of $27, and an expected return of 10 percent. Jillian will invest $50,000 in either fund. Which of the following statements is most accurate if Jillian has a 6-month holding period? The:

A)   investor is better off with the redemption fee fund by $592.50.

B)   investments are equal.

C)   investor is better off with the front-end load fund by $120.00.

D)   investor is better off with the redemption fee fund by $712.50.

The correct answer was A)

Front end load fund:	$50,000 (1 – 0.04)(1.065)	= $51,120.00
Redemption fee fund:	$50,000 (1.05)(1 – 0.015)	= $51,712.50
Redemption fee fund advantage		$ 592.50

The net asset value of a closed-end mutual fund is $11.20, and the share price is $10.00. The discount or premium is closest to:

A)   12.0% premium.

B)   10.7% discount.

C)   12.0% discount.

D)   10.7% premium.

The correct answer was B)

(SP - NAV)/NAV =

(10.00 - 11.20)/11.20 = -0.107

14.Bill Lynch, CFA, is a branch manager for a brokerage firm. He is reviewing a set of slides for a sales presentation that one of his subordinates will deliver next week. In a section that explains the nature of the various fees charged by investment companies, Lynch finds slides that state the following:

Slide 8: Fees charged by investment companies are a trade-off from the investor’s point of view. Lower fees will subtract less from the investor’s rate of return, but higher fees give portfolio managers greater incentives to achieve higher returns.

Slide 12: When choosing between a fund’s share classes, the investor should select the class with the lowest total annual fees.

Should Lynch agree or disagree with the statements on these two slides?

Slide 8

Slide 12

A)                                        Disagree       Disagree

B)                                        Agree    Agree

C)                                        Agree    Disagree

D)                                        Disagree       Agree

The correct answer was A)

Lynch should disagree with both of these statements. Premiums, loads, and redemption fees are compensation for sales and marketing efforts, but they are not performance incentives for the portfolio managers. Different classes of shares can be structured with different schedules of front-end, back-end, and distribution fees. The optimal choice depends on the investor’s expected holding period and is not necessarily the one with the lowest total annual fees.

15.A sales commission charged by an investment company at the time of redemption is called a:

A)   back-end load.

B)   front-end load.

C)   distribution fee.

D)   12b-1 fee.

The correct answer was A)

A front-end load is a sales commission charged at purchase. A distribution fee, also called a 12b-1 fee, is an ongoing fee, charged on an annual basis as a percentage of assets, which is used to cover any marketing expenses incurred by the management company. A charge to exit a fund is called a back-end load or a redemption fee.

16.Based on the following information, what is the net asset value (NAV) per share. There are currently no expenses and no load.

Cap Stock Sold $109,000
Price per share $10
Stock	Shares	Price	Book Value
A	1,051	$10	$5
B	2,420	$35	$29
C	1,851	$9	$8
D	900	$69	$63

A)   $13.26.

B)   $27.03.

C)   $15.96.

D)   $27.03.

The correct answer was C)

	$109,000
	$10 (per share)
Total market value =	1,051 x 10		= 10,510
	2,420 x 35		= 84,700
	1,851 x 9		= 16,659
	900 x 69		= 62,100
			= 173,969
NAV =	173,969		= 15.96 per share
	10,900

17.An investor is contemplating buying a load fund versus a no load mutual fund. She is trying to figure out the actual amount she will have to spend on the load fund. The shares have a net asset value (NAV) of $34.50 and a load of 5.2 percent. Determine which type of fund will always have a share price equal to the NAV and the price she will pay for the load fund.

         Fund            Offering Price

A)                closed-end       $34.50

B)                closed-end       $36.39

C)                open-end         $34.50

D)                open-end          $36.39

The correct answer was D)

The share price of an open-end fund will always equal the NAV, since the investment company is obligated to redeem shares at any time at current market value.

Offering price = $34.50 / (1 – 0.052) = $36.39.