In a Particular Year, Salmon Arm Mutual Fund Earned a Return

question 26

Multiple Choice

In a particular year, Salmon Arm Mutual Fund earned a return of 16% by making the following investments in asset classes: The return on a bogey portfolio was 12% calculated as follows:
-The total excess return on the managed portfolio was __________.

• A) 2%
• B) 3%
• C) 4%
• D) 5%

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Definitions:

Interest Received

The income earned from any form of investments like savings accounts, certificates of deposit, or bonds.

Cash Flows

The aggregate sum of cash entering and leaving a business, critically impacting its financial fluidity.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including issuing debt, repaying loans, and distributing dividends, as reported in the cash flow statement.

Investing Activities

Transactions that pertain to the acquisition and disposal of long-term assets and investments not included in cash equivalents.