4. Who accepts all of the risk associated with a mutual fund’s portfolio of stocks and/or...
4. Who accepts all of the risk associated with a mutual fund’s portfolio of stocks and/or bonds?
a. the fund’s managers
b. the fund’s shareholders
c. the federal government
d. the corporations that originally issued the stocks and/or bonds
held by the fund
Homework Answers
Answer is option B)
fund's shareholders participate proportionally in gains &losses, in accordance with their investment in mutual funds.
Funds are managed by AMC, asset management company, they implement funds investing strategy & it's trading process, but doesn't bear the risk.
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4. Who accepts all of the risk associated with a mutual fund’s
portfolio of stocks and/or...
ANSWER ALL. fiund is considering three mutual funds. The first is a stock fund, the second is money market fund yielding 1%. The probability a bond fund, and the third is a Exsciod Retcn 10% 5% 12...
ANSWER ALL.
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Please show all work. Thanks!
An optimal risky portfolio has been developed with investments in stocks and bonds This optimal portfolio has 24% invested in bonds and the remainder invested in stocks The optimal portfolio mean return is 12.05% and its standard deviation is 18.45% The t-bill rate is 4.75%; what is the mean of the complete portfolio if 33% is invested in the optimal portfolio and theremainder is invested in T-bills? a What is the resulting allocation to stocks...
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ANSWER ALL.
fiund is considering three mutual funds. The first is a stock fund, the second is money market fund yielding 1%. The probability a bond fund, and the third is a Exsciod Retcn 10% 5% 12% Stock Fund (S) Bond Fund (B) The correlation between the fund returns is 0.10 (ie. negative). 30. Calculate the wcights on socks (mu) and bonds (m) associated with the Minimum b, (w-74% , w -26%) d. (we-28%, w-72%) the expected return for a...
Please show all work. Thanks!
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