Asra just graduated from Concordia and landed a great job at Telus on April 3, 2023. She

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Asra just graduated from Concordia and landed a great job at Telus on April 3, 2023. She has been with the Bank of Montreal (BMO) as a client since she was 10 years old when she first opened her account with her parents. She is now interested in buying mutual funds and has decided to meet with the BMO financial advisor regarding their BMO U.S. Equity Fund Series A. (hint: click on the blue highlighted fund link, or search the internet for this fund to respond to the questions below; alternatively, you can go to the eConcordia FINA 200 landing page where you will see Morningstar which gives the search capabilities for various funds).

a) What is the annual Management Expense Ratio (MER) for the fund BMO U.S. Equity Fund Series Athat Asra is interested in?

b) What is the date this fund started trading (i.e. date series started)?

c) Asra is on a tight monthly budget but would like to start investing on a regular monthly basis. What would be the minimum amount Asra needs to get into this fund as an initial investment, and what would be the minimum needed thereafter should Asra wish to invest additional funds?

d) What is the Net Asset Value (NAV) of BMO U.S. Equity Fund Series A? (Hint: The NAV fluctuates daily as the value of the individual fund holdings and the number of outstanding fund shares change. The NAV is calculated and published each day between 4:00 and 6:00 p.m. Eastern Time). Simply respond with the value and date on the date of your research.

NAV $: _________

State the date that you obtained this value ____________

e) Asra has $5,000 in savings that she would like to buy as an initial investment in BMO U.S. Equity FundSeries A. Based on the Net Asset Value (NAV) in d) how many mutual fund units could she buy?

f) Asra’s gross annual salary is $70,000 with employer deductions at source and other withholdings of $25,000. She is paid once a month and with her first pay cheque from Telus is looking to invest 10% of her monthly disposable income to purchase BMO U.S. Equity Fund Series A on a regular monthly basis. Based on the Net Asset Value (NAV) in d), how many mutual fund units could she buy on a monthly basis? (ignore the initial investment required to buy into this fund and solely calculate Asra buying additional funds; assume the NAV does not change).

g) What is the risk rating assigned to this fund?

h) Name the top 2 investment holdings in this fund?

· To help you respond to some of the following questions on Exchange Traded Funds (ETFs), you will need to click on BMO U.S. Equity ETF Fund.

i) Asra is having doubts about the BMO U.S. Equity Fund Series A fund and is now looking at investing in Exchange Traded Funds (ETFs). She finds BMO U.S. Equity ETF Fund to be an interesting ETF fund. What is the annual Management Expense Ratio (MER) for the fund BMO U.S. Equity ETF Fundthat Asra is now interested in? (.5 marks)

j) Name the top two investment holdings in this ETF fund?

k) What are Exchange Traded Funds (ETFs)?

l) What are two advantages of Exchange Traded Funds (ETFs)?

m) Asra wants to know what it means to reduce your investment risk through asset allocation?

n) Asra also wants to know two strategies for diversifying among stocks.

o) Asra was in the elevator going to meet her friend Robyn for lunch at ABC Inc. when she overheard the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) of ABC Inc. talking about the confidential acquisition next week of ABC Inc. acquiring a company called WootWoot! Inc. The CEO and CFO discussed paying a premium for the purchase of Woot!Woot! Inc. Asra was excited as she knew that this would increase the value of the stock and decided to instead invest in Woot!Woot! Inc. instead of buying mutual funds or ETF’s. She also told her friend Robyn who also held shares in Woot!Woot! Inc. but was ready to sell them due to needing money due to flooding issues. Asra told Robyn to hold off on selling her Woot!Woot! shares until the acquisition went through as she could make a lot of money. This information is considered _____________________ and if Asra trades based on this information, it could be considered ____________________.