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Question 1 of 5 Consider the follow portfolios of mutual funds: Mutual fund port

ID: 2780489 • Letter: Q

Question

Question 1 of 5

Consider the follow portfolios of mutual funds:

Mutual fund portfolios and allocations

Portfolio

Equities Fund

Bond Fund

Cash

A

80%

15%

5%

B

60%

30%

10%

C

30%

55%

15%

According to the lecture on November 2, 2017, which statement below is accurate?

A.

All of these portfolios would be ideal in a strong economy.

B.

Portfolio C is called "aggressive."

C.

Portfolio B is the most prudent if you expect a bad recession in the near future.

D.

The column labeled "Cash" is actually a mutual fund that invests in short-term Treasury securities.

E. None of the above statements are accurate.

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Question 2 of 5


given the trading symbols of SPY security and AGG security. The equity security has a beta of  , and the bond security has a beta of  .

Question 3 of 5

given the trading symbols of SPY security and AGG security. If you made a portfolio that was one round lot (100 shares) of each of these, which of the following would be closest to the total cost of your investment?

A. $22,000

B. $37,000

C. $50,000

D. $71,000

Question 4 of 5

Match the term to its description.

A. portfolio of 30 or more individually selected stocks

B. mutual fund

C. ETF

selectABC

1. limited number of opportunities per year to switch

selectABC

2. ability to buy and sell at any time

selectABC

3. expensive to create and keep balanced

Question 5 of 5

Which of the following statements is correct?

A. Independent risk is systematic risk.

B. Systematic risk is non-diversifiable risk.

C. Common risk is independent risk,

D. Non-diversifiable risk is non-systematic risk.

Question 1 of 5

Consider the follow portfolios of mutual funds:

Mutual fund portfolios and allocations

Portfolio

Equities Fund

Bond Fund

Cash

A

80%

15%

5%

B

60%

30%

10%

C

30%

55%

15%

According to the lecture on November 2, 2017, which statement below is accurate?

A.

All of these portfolios would be ideal in a strong economy.

B.

Portfolio C is called "aggressive."

C.

Portfolio B is the most prudent if you expect a bad recession in the near future.

D.

The column labeled "Cash" is actually a mutual fund that invests in short-term Treasury securities.

E. None of the above statements are accurate.

Reset Selection

Question 2 of 5


given the trading symbols of SPY security and AGG security. The equity security has a beta of  , and the bond security has a beta of  .

Question 3 of 5

given the trading symbols of SPY security and AGG security. If you made a portfolio that was one round lot (100 shares) of each of these, which of the following would be closest to the total cost of your investment?

A. $22,000

B. $37,000

C. $50,000

D. $71,000

Question 4 of 5

Match the term to its description.

A. portfolio of 30 or more individually selected stocks

B. mutual fund

C. ETF

selectABC

1. limited number of opportunities per year to switch

selectABC

2. ability to buy and sell at any time

selectABC

3. expensive to create and keep balanced

Question 5 of 5

Which of the following statements is correct?

A. Independent risk is systematic risk.

B. Systematic risk is non-diversifiable risk.

C. Common risk is independent risk,

D. Non-diversifiable risk is non-systematic risk.

Explanation / Answer

only first question will be answered as per chegg guidelines:

Q1) Answer is option D. Cash investments in mutual fund portfolio usually refers to investments in short term treasury securities which are highly liquid and low risk investments and offer less returns.

For your benefit I am answering two more questions:

Q 4) Match: A-> 2; B-> 1; C-> 3

Q5) Answer is option B. Systemic risk is non-diversifiable risk is correct.

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