FNCE 2820 Exam| Questions and Complete
Answers| Verified 100% Correct| Rated A+
How does the average fee for a mutual fund compare to the fees on an ETF or index
fund? - ✔✔ETFs expense ratios generally are lower than mutual funds,
. What are the limitations of mutual funds? - ✔✔high expense ratios and sales
charges, management abuses, tax inefficiency, and poor trade execution. the higher
return could bite you due to the fees impacting the effects of compounding
What is an international mutual fund? What are some of the risks associated with
international investing? What is the difference between an international mutual fund
and a global mutual fund? - ✔✔An international fund is a mutual fund that can invest
in companies located anywhere in the world outside of its investors' country of
residence. the risk is These funds carry unique risks such as volatility due to geopolitical
events or fluctuations in currencies. international funds invest in non-U.S. markets,
while global funds may invest in U.S. stocks alongside non-U.S. stocks.
What is the biggest factor in determining a portfolio's total return? - ✔✔The
timespan and return rate.?????
What affects your credit score (positives and negatives) - ✔✔Payment history.
Amounts owed.
Length of credit history.
New credit.
Credit mix.
, What is liquidity and how does it apply to investing? - ✔✔how easily the investment
can be turned to cash
What is the difference between a full service brokerage account and a discount or self
directed brokerage account? - ✔✔While a discount brokerage firm will provide you
with all the trading tools you require in exchange for a minimal cost, full service
brokerage firms will offer you investing guidance in exchange for a higher fee.
What is a fiduciary? - ✔✔a financial advisor that must do in best regards to the client
Please rank these asset classes (cash, bonds, stocks) with regards to inflation risk. -
✔✔???????
Please understand the terms of bonds- coupon, face value, credit risk, and maturity. -
✔✔coupon- percent that is payed in interest.
Face Value- always 1000
credit risk- risk that a bond issuer may fail to make payment when requested or that an
insurance company will be unable to pay a claim.
maturity- period of when the owner receives interest
How often do bonds pay an investor interest? How is this interest payment calculated? -
✔✔twice a year and is half of the coupon rate.
How do you calculate the after tax yield on a bond? Know how to compare bond yields
on an after tax basis. I will give you the tax rate on the exam but you will need to do the
calculation. After tax yield= Pretax Yield * (1- tax rate). - ✔✔Pretax Yield * (1- tax
rate).
Answers| Verified 100% Correct| Rated A+
How does the average fee for a mutual fund compare to the fees on an ETF or index
fund? - ✔✔ETFs expense ratios generally are lower than mutual funds,
. What are the limitations of mutual funds? - ✔✔high expense ratios and sales
charges, management abuses, tax inefficiency, and poor trade execution. the higher
return could bite you due to the fees impacting the effects of compounding
What is an international mutual fund? What are some of the risks associated with
international investing? What is the difference between an international mutual fund
and a global mutual fund? - ✔✔An international fund is a mutual fund that can invest
in companies located anywhere in the world outside of its investors' country of
residence. the risk is These funds carry unique risks such as volatility due to geopolitical
events or fluctuations in currencies. international funds invest in non-U.S. markets,
while global funds may invest in U.S. stocks alongside non-U.S. stocks.
What is the biggest factor in determining a portfolio's total return? - ✔✔The
timespan and return rate.?????
What affects your credit score (positives and negatives) - ✔✔Payment history.
Amounts owed.
Length of credit history.
New credit.
Credit mix.
, What is liquidity and how does it apply to investing? - ✔✔how easily the investment
can be turned to cash
What is the difference between a full service brokerage account and a discount or self
directed brokerage account? - ✔✔While a discount brokerage firm will provide you
with all the trading tools you require in exchange for a minimal cost, full service
brokerage firms will offer you investing guidance in exchange for a higher fee.
What is a fiduciary? - ✔✔a financial advisor that must do in best regards to the client
Please rank these asset classes (cash, bonds, stocks) with regards to inflation risk. -
✔✔???????
Please understand the terms of bonds- coupon, face value, credit risk, and maturity. -
✔✔coupon- percent that is payed in interest.
Face Value- always 1000
credit risk- risk that a bond issuer may fail to make payment when requested or that an
insurance company will be unable to pay a claim.
maturity- period of when the owner receives interest
How often do bonds pay an investor interest? How is this interest payment calculated? -
✔✔twice a year and is half of the coupon rate.
How do you calculate the after tax yield on a bond? Know how to compare bond yields
on an after tax basis. I will give you the tax rate on the exam but you will need to do the
calculation. After tax yield= Pretax Yield * (1- tax rate). - ✔✔Pretax Yield * (1- tax
rate).
