Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 2FPE
Related questions
Question
Q1. What is a mutual fund? In what sense is it a financial institution?.
Q2. How is the net asset value (NAV) of a mutual fund determined? What is meant by the term marked-to-market daily?
Q3. An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain $2, and charges
a fee of $2 when the fund is sold on year for $52.50. What is the net rate of return from this insurance?
Formula for Question 3:
Net gain = Dividend + capital gain + profit from fund sold – fee
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