Ownership of mutual fund shares represents A) ownership of one share of every securite in the portfolio B) ownership of a pro rate share of every security in the portfolio C) a senior claim on the portfolio assets D) a residual claim on the portfolio assets

Q: Are securities that provide for a sinking fund more or less risky from the bondholder’sperspective…

A: The securities that are provided for a sinking fund are less risky from the perspective of…

Q: Which of the following is most likely to expose the holders to counterparty credit risk? A.…

A: Counterparty credit risk is the risk where the party involved in the transactions makes default in…

Q: Which type of investment is redeemable by investors at its Net Asset Value? O Open end mutual fund…

A: Mutual Funds ia a fund that pools money from various investors and professonaly manages that money…

Q: WHICH OF THE FOLLOWING IS A COMPONENT IN THE STATEMENT OF NET POSITION FOR THE PROPRIETARY FUND:…

A: Restricted Net Position is the component of net position that represents the difference betw  een…

Q: A share lending agreement

A: Agreement can be defined as the mutual consent between two or more parties upon the some case or to…

Q: Which of the alternative lists of securities below ranks the ecurities in order of increasing risk?…

A: Risk, in the context of finance and investment, refers to the uncertainty or potential for financial…

Q: Which of the following may properly be reported as a component of net position in the proprietary…

A: Proprietary fund is one of the fund maintained by government organisation. This accounts for…

Q: A convertible bond can be convert into share of the company at the option of the: holder regulator…

A: Convertible bond are the bonds that can be converted  into common stock at a future date. Such bond…

Q: How is the net asset value (NAV) of a mutual fund determined? What is meant by the term…

A: A mutual fund is a type of investment fund that is managed by the investment professionals and take…

Q: 4) Primary Markets exist for securities such as ________ to be offered to potential investors for…

A: Primary market:  Securities are created on the primary market, and investors trade those securities…

Q: Advantages and disadvantages of exchange - traded funds versus mutual funds.

A: Mutual funds refers to a pool of investment. Mutual funds can be of two types:  closed ended and…

Q: What is a bond sinking fund? What is the purpose of establishing a sinking fund? Are bonds that…

A: A bond sinking fund is the total amount of cash kept in a fund that will be used to retire a bond…

Q: Bonds that permit the bondholder to exchange the bonds into shares of common stock at a fixed price…

A: 1) Callable Bond is a derivative which gives the issuer the right to redeem the bond before bond's…

Q: Which of these entities has more stable and secured investment? a. Common stockholder b. Preferred…

A: Investment is defined as the item or asset which is acquired with the objective of generating the…

Q: Hedge effectiveness must be documented before a particular hedge qualifies for hedge accounting.…

A: Hedge fund refers to a type of fund that is used to reduce the risk associated with the overall…

Q: Capital outlays financed from general obligation bond proceeds should be accounted for through a:…

A: There are two types and forms of expenses that are being incurred by the business. One is capital…

Q: 2. This type of investment is considered a debt instrument. A Stocks ® Bonds © Mutual funds O…

A: There are two type capitals equity and debt

Q: Mutual Funds, Unit Investment Trust Funds, Separate Managed Accounts, Public Equity, and Hedge Funds…

A: Investment is referred as the purchase of an assets or group of assets to generate income on the…

Q: All of the following could be considered a financial security with the exception of: Treasury bond…

A: The question is related to Financial security. Financial securities are Shares, debentures,…

Q: Cost of funds of new re issues New debr financing New equity financing

A: There are many ways of financing of project equity, debt and internal financing.

Q: Which type of investment is redeemable only by authorized participants? Open end mutual fund Closed…

A: Analysis of the options given: Open end mutual fund -Open end mutual fund is open to investors i.e.,…

Q: Target date mutual funds hold only debt instruments (e.g., bonds) with a maturity that matches the…

A: Mutual Funds are modern investment option where units and even fractional units of fund is traded…

Q: mutual funds,

A: Mutual Funds: A mutual fund is a company that mobilizes the savings of various investors into…

Q: Banks raise funds options A Only from deposits B From deposits and from issuing bonds C From…

A: Banks: A bank represents a financial institution that primarily functions by providing loans and…

Q: How do mutual funds differ from UITFs?

A: Mutual Funds are constructed with the help of a pool of money that is collected from many investors…

Q: A share capital previously issued and subsequently acquired back *   Choices; Ordinary share…

A: Share capital can be classified as: Ordinary share capital. Treasury share capital Cumulative…

Q: e between the carrying value of the investment and its related cumulative unrealized gain or…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: Which of the following is NOT a capital market instrument? a) Bonds b) Right Issue c) Commercial…

A: Capital market instruments are those instruments whose main purpose is to link investors with the…

Q: The least risky capital market security is a.preferred stock. b.common stock. c.corporate bonds.…

A: The primary purpose of capital markets is to offer financial products like stocks and bonds. Stocks…

Q: In an equity swap where a liability is settled through the issuance of equity securities A.no gain…

A: According to IFRS the financial liability is renegotiated and the equity is issued to a creditor in…

Q: Investors generally place their funds in equity securities because of:   a.The expected dividends b…

A: Equity investment is the possibility to increase the value of the principal amount invested. This…

Q: Investments in debt securities are classified into the following categories according to…

A: Investment in debt securities: Purchase of debt securities of another corporation.

Q: What is the maximum percentage (%) of net assets of a mutual fund that can be invested in…

A: the maximum percentage of net assets of mutual funds that can be invested in derivatives is 10%.

Q: Investments in equity securities are adjusted to fair value at the end of the period. This…

A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question…

Q: Which of the following is a current liability? Select one: A long-term debt maturing currently,…

A: As per IFRS 1  A Current Liability is Liability which is payable with in normal operating cycle…

Q: The portion of the Private Equity timeline where capital flows to the LP's is called the

A: Private equity is the equity which has been invested by the investors in the business or company.…

Q: Common Bond Investment Strategies: Interest Rate Strategy: Passive Strategy:…

A: Step 1 Your investment goals and time frames, the amount of risk you are willing to face, and your…

Q: Which of the following is included in the Reserves? Preference Share Capital Subscribed Ordinary…

A: Preference Share Capital: This is part of Capital Stock under shareholder's equity.  Subscribed…

Q: Identify and explain the various share capital transactions subsequent to original issuance.

A: After the original issuance of shares, which normally takes place through an IPO (initial public…

Q: What are the advantages and disadvantages of buying bonds mutual funds?

A: Bond Mutual Fund is a pool of funds of small investors, where the fund manager invest the money of…

Q: Investments in debt securities made to generate trading gains are classified as:   Multiple Choice…

A: Investment in securities means to put the money in some securities in order to get returns in…