An environmentally-friendly balanced mutual fund began the year with a net asset
value (NAV) of $12.25 per share. During the year it received $00 dividend and interest
income, $0.25 in realized capital gains, and $0.50 in unrealized capital gains. Ninety
percent of the income and all of the realized capital gain were distributed to
shareholders. Calculate the year-end NAV.
One limitation of the life cycle approach is that all companies fall into a specific
category.
Futures trade on the:
a. Spot market.
b. over-the-counter market.
c. forward exchanges.
d. futures exchanges.
Risk premiums, or yield spreads, refer to the issue characteristics of bonds. They are the
result of 7 factors. Listing them, they are differences in:
1) ___________________________________________
2) ___________________________________________
3) ___________________________________________
4) ___________________________________________
5) ___________________________________________
6) ___________________________________________
7) ___________________________________________
What are some of the steps involved in valuing a company’s common stock?
Global funds tend to hold a higher percentage of their portfolio in U.S. securities than
do international funds.
What is the put-call parity? How is it related to arbitrage?