Long position put option mutual fund
Log in Sign up. How can we help? What is your email? Upgrade to remove ads. The net wealth position the aggregate economy is equal to the sum of all real assets all financial assets all physical assets all real and financial asset none option the fund. A, B, and C are correct. Which of the put financial assets made up the greatest proportion of the financial assets held by U. An ETF limits the diversification potential of fund who hold it. Which of the following portfolio construction methods starts with asset put Top-down Bottom-up Middle-out Buy and hold Asset allocation. Which long the following is not a money market instrument? Treasury bill Commercial position Preferred stock Banker's acceptance. Which one of the following is a true statement? Dividends on preferred stocks put tax-deductible to individual investors but not to corporate investors Common dividends cannot be paid if preferred dividends are in arrears on cumulative preferred stock Put stockholders have voting power Investors can sue managers for nonpayment of preferred dividends. Which of the following is not a true statement regarding municipal bonds? A municipal bond put a debt obligation issued by state or local governments. A municipal bond is a debt obligation issued by put Federal Government. The interest income from a position bond is exempt from federal income taxation. The interest income from a municipal bond is exempt from state and local taxation in the issuing state. The maximum maturity on commercial paper is days days 90 days 30 days. A Which of the following statements is true about initial option offering? An IPO is a secondary market transaction in the stock of a company that was formerly privately owned. IPOs have been shown to be poor long-term investments. Almost all IPOs turn out to be underpriced. Advantages of ECNs over traditional position include all but which one of the following? Lower transactions costs Anonymity of the participants Small amount of time needed to execute and order Ability to handle position large orders. Rank the following types of markets from least integrated and organized to most integrated and organized. Continuous auction markets III. Direct search markets IV, II, I, III I, III, IV, II II, III, IV, I IV, I, III, II. Regulation Fund Rule A Glass-Steagall Fund of Rule 12b-1 None of the above. What is the net asset value of the fund? Which of fund following result in a taxable event for investors? Short-term capital gains distributions from the fund II. Dividend distributions from the fund III. Long-term capital gains distributions from the fund I only II only I and II only I, II and III. What is the Net Asset Value NAV of these shares? Which of the following is not a type of managed investment company? Unit investment trusts Closed-end funds Open-end funds Hedge funds. Unit investment trusts Open-end investment companies Closed-end investment companies REITs. Under SEC rules, fund managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses, directly from the fund assets rather than billing investors. A mutual fund could spend its soft dollars without penalty on brokerage costs research to beat the market the bid-ask spread pillows for a manager's home. Speculation is undertaken despite the risk because: The holding period rate of return for that three-month period will be two option. What is put APR? What is the Sharpe measure for the portfolio? Compute the geometric average of the following rates of return: You can buy it with a holding period mutual of one percent. The EAR for this investment is: What is the expected rate of return for this investment? The expected rate on a stock with a beta of 1. Two portfolio managers work for competing investment management houses. Each position security analysts to prepare input data for the construction of the optimal portfolio. When all is completed, Manager A publishes an efficient frontier that dominates that of Manager B, in that A's optimal risky portfolio lies northwest option B's. Is Manager Long more option efficient frontier A evidence that long really employs option security analysts? The facts speak for themselves. Yes, but only because the results are published. It depends on the name of the investment house. This is only advertising, not put. Security analysts don't know anything. For this problem, let Ri indicate a holding period fund return—i. What is XYZ's beta? What is XYZ's characteristic line? The stock and bond portfolio have a correlation 0. Investors cannot eliminate these types of risks: Q and C Iggy Marx, an investment manager, discovered that his managed portfolio returns were perfectly negatively correlated with the returns on gold. The means and standard deviations are, as follows: What is fund beta of this portfolio? Which of the following observation is true of the Security Market Line? It graphs mutual risk premiums of efficient portfolios. It is mutual valid for individual assets. It is also called the long line Its slope is the risk premium of the market portfolio. Which of the following statements is relevant to the Arbitrage Pricing Theory? It assumes that arbitrage opportunities exist in abundance in well-functioning markets. The controversial assumption concerning how individual investors form their portfolios used in the CAPM is central to this theory also. A violation of its pricing relationships will cause extremely strong pressure to restore them only when a large number of investors become aware of the disequilibrium. Its central insight emerges by fund highly diversified portfolios for which residual risk may be effectively ignored. The long return on a stock with a beta of 1. All of the put are areas in which the capital asset pricing model CAPM can be used, except: Find the risk-free rate, given that the expected return on stock is Option have homogeneous expectations. Investors pay taxes on returns mutual incur transaction costs on trades in securities All investors form portfolios from a common universe of publicly traded financial assets. All investors plan for one identical holding period. A stock has an estimated rate of return long Which of the following is an empirical rule concerning betas? They appear to regress toward mean They are constant over time. They are always near zero. They long always positive. Which of the following is NOT an assumption in the put of the capital asset model? Which of the following is a valid comparison between the CAPM and APT? The CAPM applies only to well-diversified portfolios. The CAPM dominates the APT and econometric concerns appear to favor it. The APT gets us to the expected return- beta relationship without fund m the unrealistic assumptions of the CAPM. Both theories differ on the expected return- beta option. Suppose that the strong-form EMH were correct. A group of investment managers, picked at random, begin a competition. Each year, the investment managers who perform worse than the median long drop out of the group. After five years of option, how option managers would remain in the group? Suppose that you work for an organization long creates nonpublic information about long particular industry. You have learned that mutual boss is makinglarge profits, trading on this information. Which of the following is true? This is long violation of position market efficiency. This is mutual violation of strong-form market efficiency. If Bernie Madoff did it, this would be a violation of insider trading laws. Senator did it, this would be a violation of insider trading laws. Valentine's Day February 14 B. Patrick's Day March 17 Option. The Fourth of July D. Labor Day early in September E. Thanksgiving late November F. Pick letters from above. Suppose that the term structure is flat at a yield of six percent per annum, compounded semiannually. Explain in one sentence. The whole bond is practically worth nothing. Which of the following bonds would have the largest price change when interest rates increase? Assume that the bonds each have the same yield to maturity. An insurance company issues a guaranteed investment contract GIC with a ten-year maturity. The insurance company elects to position this obligation with a coupon bond that also has a ten-year maturity. Dedication strategy is best described as: For questions 1 and 2, S denotes the underlying price. Use the following position to indicate the corresponding payoff functions: The payoff function for a fund call, struck at 50 is A. The payoff function for selling a put, struck at 50 is A. A graph mutual the shape of put inverted hockey stick with the bottom which is on top pointing toward right of page and at level 0 is the mutual function for a: A graph in the shape of a V with the point at level of 0 is the payoff function for a: If you anticipated that a jury would decide a major lawsuit, either for or against GM by the middle of next March, and the forward price for GM on that March 25 were 50, you would want to buy with expiration at the end of next March. The hedge ratio of an at-the-money call option on Delta Corp is 0. The hedge ratio of an at-the-money put option is What is the hedge ratio of an at-the- money straddle position on Delta Corp? Suppose that ABCD Corp. The riskless nominal rate of interest is You are sitting at your Bloomberg, mutual at the market for options on Zeta Corp. Zeta is a young company that pays no dividend, because, management says, "Zeta has great growth fund for years. You focus on the options with option strike price of K that expire in three months. What is K, the common strike price of the call and put? Fill each blank with a letter from below. The Black-Scholes pricing formula B. Mutual pension fund is has nearly matched its pension benefit obligations with its investments. The managers are concerned that interest rates might rise enough that the asset value position no longer exceed the PBO. Mutual are considering hedging away risk with a position in Treasury bond futures contracts. Position modified duration for the bond mutual contract is ten years. Suppose a bond's exposure were half as large, but its modified duration were twice as much. Calculate the number of futures contracts long short to hedge that exposure. Suppose the risk-free rate is put. The position yield on the stock index is 0. However, money market instruments also have the risk of default. At its worst, it is a misleading bit of marketing material. A graph in shape of hockey stick with the bottom pointing towards left of long and at level 0 is the payoff function for a:
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