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Where can one find out about the manager ownership of fund shares?
the shareholder's report.

What is the typical manager tenure for the 25 largest mutual funds?
8 plus years

What types of bonds does the Barclays Aggregate Bond Index include?
mediumterm government and quality corporate.

Describe a fundamental factor index.
Funds based upon fundamental factors like price to book, dividends, earnings, etc....

Describe GARP
somewhat conservative form of growth style equity selection.

What is the median compensation for a mutual fund manager?
$450,000

How many funds use outside managers?
1 in 8.

What was the average tenure of fund managers whose performance consistently ranked in the top half?
9.5 years

According to a Lipper study (19712003), what happened to the performance of the top 30 mutual funds over the subsequent 5year period?
underperformed the S&P 500 in each (and every) instance.

What do 2 standard deviations represent?
Expected returns for about 95% of the time.

Which equity categories have 2 of the highest standard deviations?
precious metals and natural resources

The S&P 500 is projected to drop by 10% next year. XYZ Blend Fund has a beta of 0.9; what annual return is projected for XYZ?
9.0%

Alpha measures the difference between a fund's what?
expected returns and actual returns

Is alpha still meaningful if the fund has a low Rsquared?
No.

Does alpha reflect management's skill in selecting securities? Does a low alpha mean a mutual fund has low expenses?
Not necessarily/no

What is the first step in calculating the Sharpe ratio?
subtract the TBill rate from the fund's return.

What is the Rsquared for U.S. Treasury Bills?
100

What is the relationship between beta and standard deviation?
modesttomoderate

What does Sharpe ratio include in order to show riskadjusted returns?
standard deviation

What are the 2 major types of value investing?
relativevalue and absolutevalue

Name a variation or type of techinical analysis that attempts to be on the sidelines when the market is moving downward.
market timing

What is the minium percentage of overseas holdings required for a foriegn equity fund?
40%

What have studies generally concluded about currency hedging in funds?
They can have a moderatetomeaningful shortterm impact.

When does growth style equity investing tend to perform the best?
advanced stages of the bull market.

Differentiate between small company and capital appreciation funds.
Small company funds are almost always more conservative.

