The Investment Research Institute Reported in Its Mutual Fund Fact

question 53

Multiple Choice

The Investment Research Institute reported in its Mutual Fund Fact Book that the number of mutual funds increased from 5,725 in 1999 to 7,977 in 2009. What is the geometric mean annual percent increase in the number of funds?

• A)1.034
• B)3.37
• C)39.34
• D)71.11
• E)633.5

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Definitions:

Lease Financing

A method of funding for acquiring assets, where the item is leased rather than purchased outright, often with an option to buy at the end.

Cash Payment

A transaction in which the payment for goods or services is made in cash at the time of purchase.

Debt Financing

A method of funding where a company raises capital through borrowing, typically from institutional sources or by issuing bonds.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.