Answer Happy

The difference between mutual funds and exchange traded funds (ETFs) is that: O Mutual fund shares do not trade in the secondary market and exchange traded fund shares do. O Mutual fund portfolios are diversified and exchange traded funds do not offer diversified portfolios. QUESTION 11 Which one the following is not a function performed by the financial markets and institutions? Enable the flow of funds from savers to investment projects. Allow for liquidity in the economy and help maintain the payment system. Ensure that the beta risk of individual stocks do not exceed 1.0. Allow investors to transport wealth into future time periods. QUESTION 12 Historical data on rates of return indicate that: T-bills and T-bonds yield about the same rate of return on average. On average T-bonds yield higher rates of return than T-bills. On average T-bills yield higher rates of return than T-bonds. T-bills have a higher standard deviation of returns compared to T-bonds.