An Implementation Lag Is

question 201

Multiple Choice

An implementation lag is

• A) the time it takes to see if that there has been a shock to the economy.
• B) the time it takes the Fed or Congress to change economic policy.
• C) the time it takes for a new economic policy to affect behavior in the economy.
• D) none of the above

Calculate and interpret the net asset value (NAV) of mutual funds.

Differentiate between open-end and closed-end mutual funds, including their issuance and trading characteristics.

Recognize the role and performance comparison of actively managed funds vs. market indexes.

Analyze the impact of fees and distributions on mutual fund returns.

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Definitions:

Yield To Call

The rate of return anticipated on a bond if it is held until the call date, before the bond's maturity date.

Par Value

The face value of a bond or stock, representing the amount the issuer will return to the holder at maturity.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.

Market Price

The current price at which an asset or service can be bought or sold in the open market.