Index funds usually pay higher taxes and managed funds

Assignment Help Financial Management

Reference no: EM131566105

1. You have one share of Sierra stock and one share of Tango stock in a portfolio. Both are equally priced. Both have an expected return of 6% and both have a standard deviation of returns of 2%. The returns of the two stocks are not perfectly correlated. Which of the following statements is true about this two-stock portfolio?

A. The portfolio expected return is not 6% and the portfolio standard deviation is 2%.

B. The portfolio expected return is not 6% and the portfolio standard deviation is not 2%.

C. Answer is not possible or not listed

D. The portfolio expected return is 6% and the portfolio standard deviation is not 2%.

E. The portfolio expected return is 6% and the portfolio standard deviation is 2%.

2. Which of the following statements is true?

A. Answer is not possible or not listed

B. Index funds usually pay higher taxes and managed funds usually have lower fees.

C. An index fund is actively managed and a managed fund usually has higher fees.

D. Index funds usually have higher fees and managed funds usually pay higher taxes.

E. Index funds usually pay lower taxes and managed funds usually have higher fees.

Reference no: EM131566105

Questions Cloud

What is madison weighted average cost of capital : What is Madison’s weighted average cost of capital? Madison should stay where it is or adopt the higher debt oriented capital structure?

Payments does lease have a positive npv for both parties : For what range of lease payments does the lease have a positive NPV for both parties?

Loan agreement with bank and begin taking the discount : Should Simple Simon's enter the loan agreement with the bank and begin taking the discount

Annual sales volume is needed to generate net present value : What annual sales volume is needed to generate a net present value of $0?

Index funds usually pay higher taxes and managed funds : Index funds usually pay higher taxes and managed funds usually have lower fees. An index fund is actively managed and a managed fund usually has higher fees.

Several terms are unique to auto leases : Automobiles are often leased, and several terms are unique to auto leases. What is your monthly lease payment for 36-month lease if the sales tax is 7 percent?

What lease payment will make lessee and the lessor equally : What lease payment will make the lessee and the lessor equally well off?

Lease or buy new computer-assisted drilling system : The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted drilling system for its oil exploration business.

Lease payments will lease be profitable for both parties : Over what range of lease payments will the lease be profitable for both parties?

User Account

All Pages