What is a benchmark and why is there a need to compare the fund's return vis-a-vis a benchmark?

Q: Which of the following does attribution analysis involve? A) Carrying out sensitivity analysis to…

A: Answer: The correct option is option (D)

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: A financial analyst considers three funds. The funds' estimated returns depend on future economic…

A: OUTCOME PROBABILITY FUND M FUND N FUND P A 10.00% -10.00% -25.00% 10.00% B 30.00% 8.00% 10.00%…

Q: How does an index fund differ from an actively managed fund?

A: An index fund and actively managed fund are different investment vehicles. They have been explained…

Q: O Identifying your investment objective O Comparing funds based on risk and re O Buying shares in…

A: Selection of mutual funds and investment in mutual fund required planning and thinking According to…

Q: - What was the fund's return, and what was an investor's return?

A: Introduction: The term investor's return can be defined as the impact which is created as a result…

Q: Calculate the portfolio truniver ratio for each fund

A: The frequency with which assets within a fund are acquired and sold by the management is referred to…

Q: When researching fund managers, which of the following statements is CORRECT? A) You would generally…

A: A person who is responsible for managing portfolios for their client and is responsible for all the…

Q: = sinking fund formula, calculate the

A: Payment per month refers to the amount which a borrower should at the end of each month or period to…

Q: What are the consequences of using a poor benchmark to evaluate a fund manager?

A: Benchmark is the standard used for the comparison by the company to know the current performance…

Q: Analyze the advantages of an index fund or a fund of funds. Explain in details

A: Mutual funds is an investment vehicle that pools out funds from large number of investors and invest…

Q: What's the difference between the two analysis approach used by a portfolio manager in determining…

A: INTRODUCTION: A portfolio is a grouping or assortment of stocks. A shareholder may own a single…

Q: Why is it so hard for actively managed funds to generate higher rates of return than passively…

A: Introduction: Mutual funds are institutions interested in pooling small sums from different…

Q: Define sinking fund

A: Fund: A fund is a pool of money save for a particular purpose. Those pools can be frequently…

Q: Managed funds are often categorised by the type of investments purchased by the fund. These include…

A: An investor is someone who invests money in the hopes of making a profit or gaining an advantage in…

Q: How do the funds grow?

A: The major motive of every investor to grow up their investment and the following are the ways in…

Q: In which phase(s) of a closed-ended fund's lifecycle is capital committed? C a C b. Formation c.…

A: A closed-end fund is a collection of investment funds based on the supply of a fixed number of…

Q: Define Money market fund

A: Introduction: Usually a financial market is a place of market on which financial instruments such as…

Q: It measures how much rate of return the fund manager/fund generates per unit of systematic risk…

A: Financial investments are the methods through which investors park or save their funds and money in…

Q: What is fund capital?

A: Capital Fund: It is the Excess of assets over liabilities for non-profit organizations is termed as…

Q: How to rate a PE Fund? (using the S&P scaling). The known factors are: GP experience, AUM, Vintage…

A: Private value reserves are pools of cash-flow to be put resources into organizations that address a…

Q: Compare the funds based on their size, management, risk level, and dividend distributions. Then,…

A: A mutual fund is an investment opportunity whereby allows the investors to buy securities. It is…

Q: Define mutual fund, and explain the advantages and disadvantages of this popular investment vehicle.

A: A mutual fund is a kind of financial vehicle created of a pool of money collected from several…

Q: One of the following sentences is true regarding the money weighted rate of return and the time…

A: The Time-Weighted Rate of Return is compounded rate of return that is computed by finding the…

Q: what is the difference between a growth fund and balanced fund?

A: Growth and Balanced mutual funds are important tools of investing with certain different risk return…

Q: In the context of evaluating performance of a particular hedge fund for the purpose of determining…

A: A high water mark is used to decide the performance / incentive fees paid to the fund managers. It…

Q: assumptions/drawbacks that the four measures of fund performance share with the Sharpe Ratio,…

A: Introduction:- Portfolio management refers to the management of portfolio. This is done with the…

Q: What

A: Before we know the meaning of value investing, we know the meaning of investing. Investing means…

Q: Explain how a fund manager should rotate its portfolio to capitalize on peaks, contraction, trough…

A: Portfolio rotation is a business strategy in which a fund manager channelizes securities in and out…

Q: Explain in detail how to derive the fund separation result from week 2. Explain what happens to the…

A: Efficient portfolio An efficient portfolio is one that offers the highest expected rate of return…

Q: Why is the WACC used in capital budgeting?

A: Every company consists of its own set of capital structures including retained earnings, equity…

Q: What are the two best reasons for considering a load fund? A. Lack of good no-load funds and…

A: Funds are an alternative of making direct investment where investors purchases units of a selected…

Q: How might the constant scrutiny and demand for consistentresults affect the long-term performance of…

A: Those funds which accept money from the investors and use that money to invest as per the scheme or…

Q: What is money market fund?

A: Introduction: Money market is a market place where the short-term securities transactions are made.…

Q: pes of risk that are relevant in capital budgeting. How is each of these risk ty

A: Step 1   A capital budget is a financial tool for estimating long-term project value. When trying to…