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18 Cards in this Set
- Front
- Back
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Closed End Investment Company
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An investment company with a fixed number of shares that are bought and sold in the secoundary securities markets
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Open end Investment company
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A mutual fund; an investment company from which investors buy shares and to whixh they resell them
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Mutual Fund
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an open end investment company
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Net Asset Value (NAV)
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Total asstes - Total Liabilities / # of shares outstanding
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load Fee
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Sales charge levied by mutual funds
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No Load mutual fund
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a mutual fund that does not charge a commision for buying or selling its shares
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load fund
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A mutual fund that chrages a commission to purchase or sell its shares
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Index Fund
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A mutual Fund whose portfolio seeks to duplicate an index of stock prices
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12b - 1 fees
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fees that a mutual fund may charge to cover marketing and advertising expenses
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Class A Shares
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Front end load fees but tend to have lower 12b 1 fees and lower annual expenses
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Class B shares
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No front end loads but have exit fees and higher 12b 1 fees
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Class C Shares
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No Front or back end load fees but have higher 12b 1 fees and higher annual expenses
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Jensen Performance Index
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A measure of performance that compares the realized return that should have been earned for the amount of the risk borne by the investor
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Jensen Performance Index (formula)
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a = r(p) - [r(f) + (r(m) - r(f))B]
a = alpha r(p) = return on portfolio r(f) = Risk free rate r(m) = return on market B = Beta |
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Treynor Performance Index
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A risk adjusted measure of performance that standardizes the return in excess of the risk free rate the portfolios systematic risk
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Treynor Performance Index (formula)
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T(i) = r(p) - r(f) / B
r(p) = Return on Portfolio f(f) = Risk free Return B = Beta |
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Sharpe Performance Index
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A risk adjusted measure of performance that standerizes the return in excess of the risk free rate by the standard deviation of the portfolio's return
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Sharpe Performance Index (formula)
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S(i) = r(p) - r(f) / Q(p)
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