Investments II: Lessons and Applications for Investors | Online Course Support

True or False: Mutual funds provide a way for investors, even those with a small amount of money to invest, to obtain a diversified portfolio of stocks or bonds.

10. Question 10 True or False: Mutual funds provide a way for investors, even those with a small amount of money to invest, to obtain a diversified portfolio of stocks…

Investments II: Lessons and Applications for Investors | Online Course Support

True or False: The research presented in Module 4 finds that actively-managed mutual funds typically are able to earn returns sufficient to compensate investors for any fees charged.

9. Question 9 True or False: The research presented in Module 4 finds that actively-managed mutual funds typically are able to earn returns sufficient to compensate investors for any fees…

Investments II: Lessons and Applications for Investors | Online Course Support

Suppose an individual wishes to assess whether he/she historically would have been better off with an actively-managed fund or a low-cost index fund. One should examine the actively-managed fund’s alpha ________ to make this assessment.

7. Question 7 Suppose an individual wishes to assess whether he/she historically would have been better off with an actively-managed fund or a low-cost index fund. One should examine the…

Investments II: Lessons and Applications for Investors | Online Course Support

Suppose one wishes to test whether a mutual fund manager has exhibited skill. As a starting point, one should examine whether the fund’s alpha ________ is positive.

6. Question 6 Suppose one wishes to test whether a mutual fund manager has exhibited skill. As a starting point, one should examine whether the fund’s alpha ________ is positive….

Investments II: Lessons and Applications for Investors | Online Course Support

Suppose a mutual fund is an index fund that follows the total stock market. Its alpha in the CAPM is ________?

3. Question 3 Suppose a mutual fund is an index fund that follows the total stock market. Its alpha in the CAPM is ________? 1 point   Positive (the magnitude…

Investments II: Lessons and Applications for Investors | Online Course Support

True or False: In a perfectly efficient market, one would expect mutual funds in aggregate to earn a positive alpha after fees (i.e., earn positive risk-adjusted returns after subtracting out fees charged)?

1. Question 1 True or False: In a perfectly efficient market, one would expect mutual funds in aggregate to earn a positive alpha after fees (i.e., earn positive risk-adjusted returns…

Investments II: Lessons and Applications for Investors | Online Course Support

True or False: Some predictability in U.S. stock returns, at least at the one-month horizon, has been found for some “complicated” firms (e.g., firms with multiple divisions spanning different industries and firm with sales overseas).

11. Question 11 True or False: Some predictability in U.S. stock returns, at least at the one-month horizon, has been found for some “complicated” firms (e.g., firms with multiple divisions…

Investments II: Lessons and Applications for Investors | Online Course Support

True or False: Research presented in Module 4 finds that mutual funds in the U.S. typically have lower expense ratios than those sold outside the U.S.

8. Question 8 True or False: Research presented in Module 4 finds that mutual funds in the U.S. typically have lower expense ratios than those sold outside the U.S. 1…

Investments II: Lessons and Applications for Investors | Online Course Support

Research presented in Module 4 finds that broker-sold mutual funds have ______ total expenses than mutual funds bought directly from the mutual fund company.

5. Question 5 Research presented in Module 4 finds that broker-sold mutual funds have ______ total expenses than mutual funds bought directly from the mutual fund company. 1 point  …