Management expense ratio is defined as the combined total of management fees, operating expenses and taxes charged for a fund during a given year expressed as a percentage of funds average net assets for that year. All mutual funds have MER.
POD is payable on death. It is an arrangement that an individual makes with financial institutions to designate beneficiaries to their bank accounts and certificate of deposits.
Diversification: it is defined as allocating funds into different stocks or mutual funds inorder to reduce the overall risk. Diversification helps in reducing risk and managing same returns.
Portfolio: Portfolio can be considered as collection of investments held by a financial institution or investment company.
Long term performance of stocks: any performance of a stock when looked at more than 1 year of investment is generally considered as long term performance. It is to look at what returns the fund is giving.
what is MER,PODS, Disversification ,portpholio , long term performance of stocks.
Use the following table: SeriesAverage returnLarge stocks11.78%Small stocks16.48Long-term corporate bonds6.24Long-term government bonds6.10U.S. Treasury bills3.84Inflation3.10a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations and enter your answer as a percent rounded to...
Use the following table of returns from 1926 through 2017: Series Large stocks Small stocks Long-term corporate bonds Long-term government bonds U.S. Treasury bills Inflation Average return 12.1% 16.5 6.4 6.0 3.4 3.0 a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the return on a portfolio that was...
Average return Standard Deviation 12.1 % Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 19.8% 31.7 16.5 6.4 8.3 6.0 9.9 5.2 5.6 3.4 3.1 3.0 4.0 a. What range of returns would you expect to see 68 percent of the time for long-term corporate bonds? (A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter...
Describe the IPO process. Compare the short term and long term performance of IPOs.
A bank can raise capital by: A. Both issuing stocks and offering long-term CDs B. Issuing Stock C. Both issuing stocks and retaining earnings D. Retaining earnings E. Offering long-term CDs
the budgeting process includes both short term and long term planning for an organizations performance to be effective. which one is more important to an organizations financial success?
research instances where a company’s stock prices are affected more by long-term or short-term performance
If the variability of the returns on large-company stocks were to decrease over the long-term, you would expect which one of the following to occur as a result? Increase in the risk premium Increase in the average long-term rate of return Decrease in the 68 percent probability range of returns Increase in the standard deviation Increase in the geometric average rate of return
4. Money market funds invest mostly in: a. stocks b. long-term bonds c. short-term fixed income securities d. short-term stocks 5. Protective covenants associated with bond agreements: a. are designed to protect the bondholder b. are designed to protect the bond issuer c. are generally disclosed at bond maturity d. are not required but increase the risk of the bond issue 6. Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are...
Actual returns and Averages year Large company stocks Long-Term Govt bonds Treasury bills 1997 0.3336 0.1770 0.0519 1998 0.2858 0.1922 0.0486 1999 0.2104 -0.1276 0.0480 2000 -0.0910 0.2216 0.0598 2001 -0.1189 0.0530 0.0333 Average: Deviations from Average Returns year Large company stocks Long-Term Govt bonds Treasury bills 1997 1998 1999 2000 2001 Total: Squared Deviations from Average Returns year Large company stocks Long-Term Govt bonds Treasury bills 1997 1998 1999 2000 2001 totals Variance: SD :