7. The YGG Fund had NAV per share of $36.12 on January 1, 2012. On December 31st

Question

7. The YGG Fund had NAV per share of $36.12 on January 1, 2012. On December 31st of the same year, the funds NAV was $39.71. Income distributions were 0.64 cents and the fund had a capital gain distribution of $1.13. Without considering taxes or commissions, what rate of return did an investor receive on the YGG fund in 2012? a. 22.92% b. 17.68% . 14.39% d. 18.52% e. 14.84% f. 14.11 8. Which of the following is true regarding equity mutual funds? i. ii. iii. iv. They invest primarily in stock. They may hold fixed income securities as well as stock Most hold money market securities as well as stock Two types of equity funds are income funds and growth funds. a. and IV b. I, Ill and IV c. , Il and IV d. , I and IlI e. , I, ll and IV The fee that mutual funds use to help pay for advertising and promotional literature is called 9. a. Front end load fee b. Back end load fee c. Operating expense fee d. 12 b 1 fee e. Structured fee f. Sarbanes Oxley transaction fee

Explanation / Answer

Answer 7 i Price on Dec 2012 39.71 ii income distribution 0.64 iii Capital gain distribution 1.13 iv=i+ii+iii Total value 41.48 v Price on Jan 2012 36.12 vi=iv-v Gain = total value - cost 5.36 vii Rate of return 14.84% Hence, Correct answer is option e. 14.84% Answer 8 Equity mutual fund primarily hold stock but also may invest in fixed income securities and money market. Equity fund can be classified as income fund and growth fund. Hence all statement are true. Correct answer is option e = I,II,III and IV Answer 9 Fees mutual fund pay for advertisement and promotion is called 12 b 1 fees. Name came from section of investment company act . Hence, correct answer is option - d. 12 b 1 fees

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.