Published Data on Past Returns Earned by Mutual Funds Are

question 76

Multiple Choice

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

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

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Definitions:

Compound Interest

Interest earned on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Bond

A financial instrument in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a specified interest rate.

Semiannual Interest

Interest that is calculated and paid twice a year, typically used in the context of bonds and loans.

Market Rate

The prevailing price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.