The FTSE 100 Index is an example of a benchmark for measuring the performance of an Equity fund. What is the role of a benchmark in measuring performance of a fund? Give an example of a Bonds Benchmark.

Q: Bond ratings primarily reflect which of the following? Reinvestment risk, Default risk , Interest…

A: Bond ratings are an important aspect of the bond. It shows the credibility level of the bond issuer.

Q: Returns on mutual fund are calculated using predictions of yields. True False

A: False. Returns on mutual funds are typically calculated based on the actual performance of the…

Q: Suppose that you are a fixed-income portfolio manager running a fully active managed fund. Which of…

A: You run a fully active managed fund as a fixed-income portfolio manager. This means that your…

Q: What is one advantage an ETF has over an open-end mutual fund.

A: Mutual fund is an institution that invests the money of small investors in financial securities like…

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: Compare no-load and load mutual funds.

A: A load mutual fund imposes an offering cost or commission for the obtained stocks. This installment…

Q: How does an index fund differ from an actively managed fund?

A: An index fund and actively managed fund are different investment vehicles. They have been explained…

Q: How to figure out price targets for stocks by charting

A: One of the most typical ways to create a target price is to first identify a technical chart…

Q: Suppose that at age 25, you decide to save for retirement by depositing $95 at the end of every…

A: IRA is an individual retirement plan and contributions made are tax free and this is quite necessary…

Q: What is a mutual fund?

A: Mutual fund is pool of funds managed by professionally qualified fund managers who collect funds…

Q: What can you tell from the factor exposures of various hedge fund strategies

A: Hedge funds strategies: Hedge funds are an important element of the alternative investment…

Q: Asset allocation is the decision of how you divide your investment portfolio between various assets.…

A: First, we need to identify Samantha's investment profile. From the information given, we know that…

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: Explain why yields, investment objectives, risk profiles, knowledge, and timing the market serve as…

A: Bonds are the financial instruments that represent promises from a borrower to a lender of paying…

Q: What is the purpose of bond ratings? What types of risks associated with a bond investment are these…

A: Investors must analyze the bond ratings before making any investments in bonds.

Q: What are the 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: 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: Analyze the advantages of an index fund or a fund of funds. Explain in details

A: Mutual funds is an investment vehicle that pools out funds from large number of investors and invest…

Q: A company’s sources of long-term funds include bonds, preferred stock and common stock. Identify…

A: Long term financing is required to fund projects with more than one year life. The funds used in…

Q: please use a specific example to compare what is the discount rate% and what is the investment rate…

A: Explanation:-   Discount rate % on treasury bills: The income generated on the T-bill is equal to…

Q: Which of the following is likely to have a price that differs from its NAV?: -open-ended mutual…

A: Mutual funds are the pooled or managed fund that  managed by the asset management company. The asset…

Q: Financial markets that facilitate the flow of short-term funds are known as: O Primary markets O…

A: Financial markets can be defined as the market where financial assets or instruments are traded.…

Q: immunization of a bond portfolio

A: Immunization is a risk-reduction approach that aligns asset and liabilities duration to protect…

Q: bonds

A: Investment options are of various types. Some investments carry higher risks while some would carry…

Q: _________ is a combination of a wide range of investment products such as bonds, shares, securities,…

A: Financial instruments are those used for trading in stock markets and investing in financial…

Q: The market rates produced from the bond market are _______ rates which may be used as benchmarks for…

A: Market rates from bond markets are used as benchmarks for other financial instruments and play a key…

Q: Out of the following options below, which one has the lowest level of risk, and which one has the…

A: Risk assessment is used by investors and financial professionals to create portfolios that are in…

Q: What is a mutual fund? How does mutual fund differ from money market fund? need this answer asap

A: A mutual fund is a kind of investment vehicle made up of a group of cash that many shareholders…

Q: Asset allocation is the decision of how you divide your investment portfolio between various assets.…

A: The distribution of securities in a portfolio based on how the risk bearing capacity of an investor…

Q: Consider the term Mutual funds and ETFs. What problem do Mutual funds and ETFs solve?

A: A mutual fund is type of a company wherein it pools the money of various investors and invests it…

Q: How to calculate Performance of Small-Cap mutual Funds

A: These funds contribute a significant part of their investible corpus equity or equity related…

Q: Give the difference between hedge funds and money market funds.

A: Hedge funds are option investments that use combined funds to generate effective gains for their…

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: What are the three most common forms of equity funding?

A: Equity funding involves the sale of shares to raise capital.

Q: The diagram below is a diagram of the  Users of Funds    Underwriter    Suppliers of Funds   A.…

A: Secondary Market is the place where securities are bought and sold which are already listed. Primary…