Let's invest in international equities!

• Log onto www.fidelity.com
• News & Research [third tab at the top]
• Mutual Funds [fifth tab at the left]

For Asset Class, click on

• International Equity

For Category, click on

• Foreign Large Blend

Then "Results" [You'll notice there are 85 funds with this "style"]

The first few columns show the returns for various time periods.Click on the "Expenses" Column, and then "Net".Those are the highest fees ... click on "Net" again ... and these are the lowest fees.[These are the management fees you pay to Fidelity.]The fund with one of the lowest management fees isFidelityInternational Index Fund (FSPSX).

Question 1.If you boughtFSPSXten years ago; that is, on 4/30/2011, how much would it have been worth on 4/30/2021?

[Hint:Hover over the date on the Hypothetical Growth of $10,000 chart.]

Question 2.If you boughtFSPSXten years ago that is, on 4/30/2011, how much would it have been worth six years ago [on 4/30/2015]?

[Hint:Hover over the date on the Hypothetical Growth of $10,000 chart.]

Question 3: What was its 6-yearaverage annual return?That is, what was itsgeometric average returnfor the six years ending 4/30/2021?

Stated differently, if I had invested inFSPSXsixyearsago (i.e., on4/30/2015), I would have earned __________% per year,compounded annually.

SHOW WORK... either keystrokes for a calculator, or an equation, or formula on Excel.

YOU MUST SHOW YOUR WORK ... NO WORK ... NO POINTS.

Show your work here:

Question 4: What was its 10-yearaverage annual return?That is, what was itsgeometric average returnfor the ten years ending 4/30/2021?

SHOW WORK... either keystrokes for a calculator, or an equation, or formula on Excel.

YOU MUST SHOW YOUR WORK ... NO WORK ... NO POINTS.

Show your work here:

Question 5:What is the benchmark forFSPSX?

Question 6:How much would you pay to Fidelity in management fees?Express your answer in dollars for a hypothetical $10,000 account.Stated differently, if I invested $10,000 inFSPSX, I would pay Fidelity$________________ per yeartomanagethe account.

[Hint:Look at the "Net fees".]

YOU MUST SHOW YOUR WORK ... NO WORK ... NO POINTS.

Show your work here:

Click on the "Composition" tab:

• Summary
• Performance & Risk
• Ratings
• Composition
• Fees & Distributions
• Commentary
• View All Tabs

Question 7:Which three countries have the highest weight inFSPSX, and how much are their corresponding weights?

1.Country 1:____________________________________Weight _______________%

2.Country 2:____________________________________Weight _______________%

3.Country 3:____________________________________Weight _______________%

Question 8:When you buy this fund, what percent of your money is invested in stocks that are denominated in US Dollars?

A)US Dollar _______________ %

What percent is denominated in "local currencies"?

B) Local Currencies ______________%

Questions 9:Is this fund "active" or "passive"?

Question 10:Why? Be specific.

Questions 11:What is a benchmark and why is it important?

Questions 12 & 13:Give two characteristics of a benchmark.

Questions 14.Is this market efficient?Click on the 5-year column.FSPSXearned 9.20% per year over the last five years.For this time frame, how many funds have higher returns thatFSPSX?

Question 15. What percent of the funds had higher returns thanFSPSX?

Question 16.Does this make a case that this market is "efficient"?Why or why not?

Questions 17:What is the most important thing you've learned from the mutual fund exercises?

Answer rating: 100% (QA)

SOLUTION Question 1 If you bought FSPSX ten years ago on 4302011 how much would it have been worth on 4302021 To calculate this we can use the hypothetical growth of 10000 chart on the Fidelity websit... View the full answer