博迪_投资学第九版_英文答案

5. Unlike an open-end fund, in which underlying shares are redeemed when the fund is

redeemed, a closed-end fund trades as a security in the market. Thus, their prices may differ from the NAV.

6. Advantages of an ETF over a mutual fund:

ETFs are continuously traded and can be sold or purchased on margin

There are no Capital Gains Tax triggers when an ETF is sold (shares are

just sold from one investor to another)

Investors buy from Brokers, thus eliminating the cost of direct marketing

to individual small investors. This implies lower management fees

Disadvantages of an ETF over a mutual fund:

Prices can depart from NAV (unlike an open-end fund)

There is a Broker fee when buying and selling (unlike a no-load fund)

7. The offering price includes a 6% front-end load, or sales commission, meaning that

every dollar paid results in only $0.94 going toward purchase of shares. Therefore: Offering price =

8.

9. NAV$10.70= $11.38 =1 load1 0.06NAV = offering price × (1 – load) = $12.30 × .95 = $11.69 A $ 7,000,000 B 12,000,000

C 8,000,000

D

Total $42,000,000 Net asset value = $42,000,000 $30,000= $10.49 4,000,000

10. Value of stocks sold and replaced = $15,000,000 Turnover rate =

$15,000,000= 0.357 = 35.7% $42,000,000