1. The fund has no liabilities and has 25,000 shares outstanding. What is the fund's net asset value?

		$13.68
		$14.05
		$14.14
		$14.62
		$14.75

3 points

QUESTION 30

1. Which one of the following accurately describes a money market mutual fund?

closed-end fund

securities with maturities up to 1 year

only U.S. government securities

high-quality, low-risk government, and/or corporate securities

U.S. Treasury bills only

3.3 points

QUESTION 20

1. A company which pools funds of individual investors and invests them on a group basis is called a(n):

combined company.

conglomeration.

allocated company.

investment company.

joint stock company.

QUESTION 16

1. The stock of Magellen Industries has a beta of 1.34. The risk-free rate is 3.6 percent and the market return is 10.8 percent. What is the expected return on Magellen stock?

		12.47 percent
		12.89 percent
		13.25 percent
		13.47 percent
		13.53 percent

3.3 points

QUESTION 17

1. Fallweather Enterprises stock has an expected return of 8.9 percent and a beta of .66. The market return is 11.4 percent and the risk-free rate is 3.7 percent. This stock is _____ because the CAPM return for the stock is _____ percent.

		greatly overvalued; 11.4
		slightly overvalued; 9.2
		priced correctly; 8.9
		slightly undervalued; 8.78
		greatly undervalued; 7.20

3.3 points

QUESTION 18

1. Green Woods stock has a standard deviation of 17.6 percent and a covariance with the market of .0198. The market has a standard deviation of 14.2 percent. What is the correlation of Green Woods stock with the market?

		.64
		.67
		.69
		.74
		.79