1. What is the main objective(s) of equity mutual funds? a ) capital gains from...
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Finance
1. What is the main objective(s) of equity mutual funds?
a ) capital gains from a diversified portfolio b) search for capital gains and be willing to forego broad diversification benefits in the hope of achieving above-average returns to provide diversification with a combination of income, safety and capital appreciation c) d ) income and safety of principal
2. Which of the following funds would most likely offer the least degree of diversification, assuming they all held the same number of securities?
a) Canadian financial sector bond fund b) Global balanced fund c ) International equity d) North American equity
3. A low dividend payout ratio may be the result of:
a) internally financed growth b) growing earnings c) both (a ) and ( b) d) neither ( a) nor (b)
4. Which of the following is a potential disadvantage of ETFs compared to mutual funds.
A) You cannot short an ETF. B) None of the other answers. ETFs are superior to Mutual Funds in every way. C) Because they can be traded at any time on the stock market and trading costs are low , investors might over -trade an ETF. D) ETFs are not as tax efficient for investors as mutual funds are .
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