Financial Markets and Institutions (2-downloads)

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Q U E S T I O N S

1. What features of mutual funds and the investment

environment have led to mutual funds’ rapid growth

in the last two decades?

2. What is meant by liquidity intermediation?

3. Considering the discussion of market efficiency from

Chapter 6, discuss whether you should be willing to

pay high fees to mutual fund investment managers.

4. Distinguish between an open- and closed-end

mutual fund.

5. Discuss why a mutual fund family may find it bene-

ficial to offer 50 or 60 different stock mutual funds.

6. How does an index fund differ from an actively man-

aged fund?