6. Which of the following is FALSE when comparing ET\'s with mutual L ETFs typic
ID: 2804920 • Letter: 6
Question
6. Which of the following is FALSE when comparing ET's with mutual L ETFs typically have lower taxable gains distributions than m 111, ETFs have lower management fees. Mutual fund management fees vary IV. Both mutual funds and ETFs are priced at the end of the trading day mutual funds Mutual funds allow short selling. ETFs do not but are generally higher a) 1& III b) ll,III & IV c) 11 & IV d) 1, III & IV 7. Which of the following is true regarding ETFs? a) ETF's are passively managed c) Are sold as front end or rear-load on stock exchanges d) All of the above Income trusts comprised of comparies with strong, stable earnings but litle potential for growth are known as a) royalty c) miscellaneous d) REITS 9. All of the following are ways listed private equilty companies finance firms except a. Distressed debt b· Leveraged buy out c Construction d. Early Stage 10. Which of the following is an ETF that trades in the Canadian Market? a) STDR's which hold all of the stocks in the S&P; 500 index b) Diamonds which are based on the Dow Jones Industrial Average c) Claymore Global Agricultural ETF d) Nasdag 100 shares known as Cubes II. Listed prívate equity managers a. often buy majority ownership in a business which allows for a greater b. c are not permitted to be on a company's board of directors depth of information to be available must answer to shareholders and regulators when implementing their business plans and selecting senior executives d. are often considered insiders and therefore are subject to their trades being regulated on the stock exchangesExplanation / Answer
6.
one of the main difference between ETF and mutual fund is, ETG trade in market like stock in market for whole day but mutual fund are price at end of the day at its Net Assets value (NAV). ETF is a passively managed fund and Mutual funds are actively managed fund. So fee charges on mutual fund is higher than ETF. So, Management fee in ETF is lower than management fee in Mutual Fund. ETF is considered as tax efficient while mutual fund does not.
Short selling is not allowed in either investment.
So, Option (B) and Option (D) is corrrect answer.
7.
ETF is a passively managed fund and Mutual funds are actively managed fund. So fee charges on mutual fund is higher than ETF. So, Management fee in ETF is lower than management fee in Mutual Fund.
Option (A) is true.
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