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5) In the Wall Street Journal’s darts versus proscompetition, the difference in returns generated by the twoportfolios is explained by:I. the darts were poorly thrownII. the pros pick riskier stocksIII. other investors buying the stocks that the pros pickIV. the pros are simply good at picking stocksA. I and IIB. II onlyC. IV onlyD. II and III6) __________ is a false statement regarding open-endmutual funds.A. They offer investors a guaranteed rate of returnB. They offer investors a well diversified portfolioC. They redeem shares at their net asset valueD. None of the above (A, B, and C are all true)7) When we analyze the performance of an activelymanaged mutual fund we find that the fund generated a beta of 1.5and an alpha of zero.A. this result shows that the manager took relativelyhigh risk when investingB. this result shows that the manager did not add anyvalue to performance with his/her decision-makingC. both (A) and (B) are trueD. none of the above8) An attractive feature of Exchange Traded Funds (ETFs)is:A. the price of the fund always matches the Net AssetValueB. the investor has more control over tax implicationsof trading than with a mutual fundC. ETFs only trade once a day, making it easier to keeptrack of their prices.D. the fund is highly likely to produce a positivealpha