FINA EXAM 3 ACTUAL 2025/2026 CORRECTLY ANSWERED

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FINA EXAM 3 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Compared to other investment options, we can safely say that investing in stocks A) has equal risk. B) has greater risk C) has less risk. D) is not worth the risk - Answer -B) has greater risk Which of the following are passed on to fund share holders through 12b-1 fees? A) Commissions B) Advertising expenses C) Promotional fees D) Only B and C E) All of the above - Answer -D) Only B and C Which of the following will affect your capital gains liability? A) Turnover ratio B) Changes in net asset value C) Expense ratio D) All of the above are correct. E) Only A and B are correct. - Answer -E) Only A and B are correct. The ________ is the value of the mutual fund's holdings, minus any debt, divided by the number of shares outstanding. A) net worth B) market value C) tangible value Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com D) net asset value E) none of the above - Answer -D) net asset value Total returns on mutual funds can be calculated by adding dividends distributed, capital gains distributed, and ________ and dividing this sum by the beginning NAV. A) beginning NAV - ending NAV B) ending NAV - beginning NAV C) dividends undistributed + capital gains undistributed D) beginning NAV + ending NAV E) ending NAV + beginning NAV - Answer -B) ending NAV - beginning NAV What is the total return for a mutual fund with the following characteristics? beginning NAV = $55.82 ending NAV = $70.52 dividends distributed = $2.25 capital gains distributed = $3.50 A) 29.71% B) 30.82% C) 32.26% D) 36.64% - Answer -D) 36.64% Zippo Mutual Fund is one of your best performers. It just announced a year-end distribution of $2.50 per share in capital gains and $4.25 in dividends. Assuming the NAV increased from $31.50 to $43.75, calculate your total annual return. A) 60.32% B) 46.87% C) 26.95% D) 24.53% - Answer -A) 60.32% Suppose that the current value of all of a mutual fund's holdings is determined to be $750 million. The fund's liabilities are $125 million and it grew at 20% from last year. It currently has 45 million shares outstanding. What is the fund's NAV? A) $12.00 per share Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com