Hector Purchased a Fund That Had an Asset Allocation of 40

question 45

Multiple Choice

Hector purchased a fund that had an asset allocation of 40% debt and 60% equity. Hector bought the fund at a 10% discount from NAV. Hector purchased:

• A) an equity, load fund.
• B) a balanced, closed-end fund.
• C) a balanced, load fund.
• D) a large-cap, blend, load fund.

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Definitions:

Parallel

A circuit configuration where components are connected across common points or junctions, allowing current to divide and flow through multiple paths.

Series

Components in an electrical circuit are said to be in series if they are connected along a single path, so the same current flows through all of the components.

Inductive Reactance

The opposition to alternating current flow due to the inductance of a component or circuit, measured in ohms.

Reactive Power

Also called wattless power. Calculated by multiplying reactive voltage by reactive current. Can be produced by inductive or capacitive loads.