which of the following past returns should mutual funds publish in their annual reports? A. Excess return B. Geometric average return C. Arithmetric average return D. Index return
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which of the following past returns should mutual funds publish in their annual reports?
A.
Excess return
B.
Geometric average return
C.
Arithmetric average return
D.
Index return
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- Differentiate between the terms expected rate of return, required rate of return, and historical rate of return as they are applied to common stocksHow is the net asset value (NAV) of a mutual fund determined? What is meant by the term marked-to-market daily?Which of the following may take the form of dividend income and/or capital appreciation? a. bond investments b.gain from an investment c.equity investments d.expected rate of return
- The VIX measures Select one: a.Realized volatility B. Current volatility C. Historical volatility D. Implied volatility5. The _____ or _____ interest rate reflects the real rate of return on an investment. a. annual or nominal b. periodic or effective c. periodic or compounding d. annual percentage yield or effectiveThe discount rate used in a net present value analysis is the ________. A. rate of interest earned on a savings account B. rate of inflation C. rate of interest charged for debt financing of an investment D. required rate of return or the hurdle rate
- A price-weighted index such as the DJIA is a geometric mean of current stock prices. a. True b. FalseBased on the information in the yellow shaded areas: a) Plot the Security Market Line (SML) b) Superimpose the CAPM’s required return on the SML c) Indicate which investments will plot on, above and below the SML?The market value of a mutual fund's assets divided by the number of fund shares outstanding is equal to the A. Load charge B. Net Asset Value (NAV) C. Expense Ratio D. 12b-1 fee
- The Expected Rate of Profit Formula looks at: A. Expected Profit & Money Invested B. Common Stock & Preferred Stock C. Expected Profit & Bonds D. All of the above(a) the expected returns of the stocks A and B.What does standard deviation measure? A. The holding period B. The gain on the investment C. Risk D. The amount of dividend #####################