please please help 17: An equity mutual fund reports a compound annual return of

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please please help

17: An equity mutual fund reports a compound annual return of 7.5% and an MER of 2.5%, his means that the MER, expressed as a percentage of the fund's gross return, is what amount? a) 7.5% b) 25% c) 21% d) 33% 18. What ls a mutual fund service fee paid to the fund distributor for providing ongoing services to the investor called? a) Management expense fee. b) Load fees c) Traler fee d) WRAP fee 19. Your client has both excelent investment knowledge, a high ability to tolerate risk, and seeks high investment returns. Choose the managed product that would be most appropriate for his particular investment philosophy a) Hedge fund b) Segregated fund. c) Exchange-Traded Fund d) Labour-Sponsored Venture Capital Corporation (LSVCC). 20. Identify the method of calculating the return of a mutual fund that assumes a constant rate of return throughout the period. a) Modified Dietz method b) Daily valuation method c) Monthly return method d) Time flow return

Explanation / Answer

17) Management Expense Ratio (MER) = Aggregate fees and Expenses for the year*100/ Average net asset value for the year. If a fund shows that the CAR is 7.5% and the MER is 2.5%, the gross return is calculated as

2.5%/10%= 25%

The answer is B - 25%

18) Trailer Fees are otherwise called as service fees which are paid to the distributor for ongoing services along with the incentives.

The answer is C - Trailer fees

19)Labour-sponsored venture capital corporations (LSVCCs) are funds sponsored by labour organizations. It provides capital to motivate the companies from to small to medium-sized and emerging companies. Since it is a venture capital, it is a highly speculative investment and it gives high risk and also high return. Therefore, this investment is suitable for investors with the high risk tolerance with the expectation of high return.

The answer is D. Labour-sponsored venture capital corporations

First three parts are answered. Thank you

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