1.Compare and contrast an open-end (mutual fund) investment fund with a closed-end investment company.
2.How is the marketing channel of distribution different for load mutual funds vs. no-load funds?
3.Why are there so many different mutual funds offered for sale?
4.Why have exchange-traded funds become popular in the last few years? Name one and specify what it tracks.
5.How do hedge funds take advantage of capital market inefficiencies and end up making the markets more efficient?
6. What are the functions that investment companies and mutual funds provide to the public?
7. You invest $1,000,000 in Formosa Growth Fund. The Fund charges a front end load of 5.75% and an annual expense fee of 1.25% of the average asset value over the year. You believe the fund’s gross rate of return will be 11% per year. What will your investment portfolio be worth in one year?