Published Data on Past Returns Earned by Managed Funds Are

question 13

Multiple Choice

Published data on past returns earned by managed funds are required to be ________.

• A)dollar-weighted returns
• B)geometric returns
• C)excess returns
• D)index returns

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Definitions:

Compounded Annually

Interest on an investment or loan calculated once a year, where each year's interest payment includes interest on the original principal and on the accumulated interest of previous periods.

Market Rate

The prevailing rate or price at which goods, services, or securities are traded in a competitive marketplace.

Bond Issue

The method through which a corporation or governmental entity generates capital by issuing bonds to investors.

Selling Price

The amount of money a buyer pays to acquire a product or service from a seller.