Obtain a prospectus and an annual report for a major mutual fund that includes some international securities.
Question:
Obtain a prospectus and an annual report for a major mutual fund that includes some international securities. Carefully read the prospectus and annual report and study the portfolio’s composition in light of the fund’s stated objectives.
a. Evaluate the amount of diversification and the types of industries and companies held. Is the portfolio well diversified?
b. Discuss the additional risks faced by an investor in this fund compared with an investor in a domestic stock portfolio such as the S&P 500.
Step by Step Answer:
Answer and thorough explanation The portfolio is diversified across a number ...View the full answer
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Business questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
How does Philip Morris handle the sensitive issues associated with marketing tobacco? What kind of information does its web site at http://www.philipmorris.com/ provide about smoking and its negative...
-
a. A trade deficit occurs when the government spends more than it receives in tax revenue. b. In an open, mixed economy, the equilibrium level of GDP occurs when planned saving equals planned...
-
Find a 95% confidence interval if 35 agree in a random sample of 100 people. Give information about the proportion of a sample that agree with a certain statement. Use StatKey or other technology to...
-
Consider the following cash flow profile and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically attractive?...
-
The following are activities that occurred at Franklin Manufacturing, a nonpublic company. 1. Franklin's accountant did not record checks written in the last few days of the year until the next...
-
1. Solve the double inequality below. Then graph the solution set on the real number line. -81+3(x-2) < 13
-
ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: On...
-
Use Yahoo! Finance or some other source to select four stocks with betas ranging from about 0.50 to 1.50. Record the current market prices of each of these stocks. Assume you wish to create a...
-
From the Wall Street Journal, a website such as Yahoo! Finance, or some other source, obtain a current estimate of the risk-free rate (use a 10-year Treasury bond). Use the Value Line Investment...
-
Consider an investor seeking to invest in France. Using the UIP condition (allowing for risk), explain how each of the following would affect the value of the euro and U.S. dollar. a. A decrease in...
-
What is the main issue/problem? (Write some basic information about the issue with the misbehavior of sports fans.)
-
Discuss what monitoring systems would ACA Travel need to have in place to recognise problems which could adversely affect work operations? delays and time difficulties difficult customer service...
-
While poor customer service is almost guaranteed to frustrate customers, good customer service alone doesn't make customers happy. Even if a company offers good customer service, it can still lose...
-
Albert Einstein once said, "Not everything that counts can be counted, and not everything that can be counted counts." As Jonah demonstrated, businesses often choose metrics poorly, and well-chosen...
-
We know that a business' reputation can be very important to its success. That may be more true today, given the public "canceling" of certain businesses. In the past if I did not like the way a...
-
What is the image of the unit sphere in R3 under the action of the matrix in Exercise 9?
-
Use the information given about the angles and to find the exact value of: (a) sin( + ) (b) cos( + ) (c) sin( - ) (d) tan ( + ) (e) sin(2) (f) cos (2) (g) sin /2 (h) cos/2 cos = 4/5, 0 < < /2; cos =...
-
A company reported net income in 2009 of $350 million. In 2013 the company expects net income to be $441.7 million. Estimate the annual compound growth rate of net income.
-
The historical returns for 2 investmentsA and Bare summarized in the table below for the period 2010 to 2014. Use the data to answer the questions that follow. a. On the basis of a review of the...
-
Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received 3 dividend payments totaling $2.70, calculate the following. a. Income b. Capital...
-
Given the file structure shown in Figure P1.1, answer Questions 4 and 5. FIGURE P1.1 21-5Z Holly B. Parker 25-2D Jane D. Grant 25-5A George F. Dorts 25-9T Holly B. Parker 27-4Q George F. Dorts 29-2D...
-
A file has 40,000 Student records of fixed-length. Consider a disk with block size B=512 bytes. A block pointer is 8 bytes long and a record pointer is 7 bytes long. Each record has the following...
-
2.40 Write a program that uses a for structure to sum a sequence of integers. Assume that the first integer read specifies the number of values remaining to be entered. Your program should read only...
Study smarter with the SolutionInn App