Q1. 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%. 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.ffice ffice" />
Fund Offering Price
A) open-end $34.50
B) open-end $36.39
C) close-end $36.39
Q2. Based on the following information, what is the net asset value (NAV) per share. There are currently no expenses and no load.
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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) $15.96.
C) $27.03.
Q3. A sales commission charged by an investment company at the time of redemption is called a:
A) back-end load.
B) 12b-1 fee.
C) front-end load.
Q4. 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) Agree Disagree
B) Disagree Disagree
C) Disagree Agree
Q5. 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) 12.0% discount.
C) 10.7% discount.
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发表于 2009-2-28 13:57
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