A Mutual Fund Had Average Daily Assets of $2

question 77

Multiple Choice

A mutual fund had average daily assets of $2.0 billion in 2003.The fund sold $500 million worth of stock and purchased $700 million worth of stock during the year.The funds turnover ratio is

• A) 27.5%.
• B) 12%.
• C) 15%.
• D) 25%.
• E) 20%.

Understand the concept of break-even analysis in units and dollars.

Calculate and interpret the effect of advertising and sales commissions on net operating income.

Understand and apply the concept of margin of safety in both dollars and as a percentage.

Calculate the sales level required to achieve a target profit.

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Definitions:

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, the need for excessive attention and admiration, and a lack of empathy for others.

Entitled

Having a belief that one inherently deserves privileges or special treatment.

Egocentric

A perspective or behavior characterized by excessive interest in oneself and prioritization of one's own needs, often lacking consideration for others.

Schizotypal Personality Disorder

An extreme pattern of odd beliefs and behaviors, and of difficulties relating to others.