Question
In: Statistics and Probability
Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the...
Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of August 12, 2011.
| Year-to-date Loss | |
|---|---|
| SHPIX (Short Smallcap Profund) | 6% |
| RYURX (Rydex Inverse S&P 500) | 5% |
| RYIHX (Rydex Inverse High Yield) | 7% |
You invested a total of $13,000 in the three funds at the beginning of 2011, including an equal amount in RYURX and RYIHX. Your year-to-date loss from the first two funds amounted to $570. How much did you invest in each of the three funds?
| SHPIX | $ |
| RYURX | $ |
| RYIHX | $ |
Solutions
orchestra answered 1 year agoRelated Solutions
Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the...
Inverse mutual funds, sometimes referred to as "bear market" or
"short" funds, seek to deliver the opposite of the performance of
the index or category they track, and can thus be used by traders
to bet against the stock market. This question is based on the
following table, which shows the performance of three such funds as
of August 12, 2011.
Year-to-date
Loss
SHPIX (Short
Smallcap Profund)
6%
RYURX (Rydex
Inverse S&P 500)
5%
RYIHX (Rydex
Inverse High Yield)
7%...
Investing: Inverse ETFs (Exchange Traded Funds) Inverse ETFs, sometimes referred to as "bear market" or "short" funds,...
Investing: Inverse ETFs (Exchange Traded
Funds) Inverse ETFs, sometimes referred
to as "bear market" or "short" funds, are designed to deliver the
opposite of the performance of the index or category they track,
and so can be used by traders to bet against the stock market. The
following table shows the performance of three such funds as of
August 5, 2015.†
Year-to-Date
Loss (%)
MYY (ProShares Short
Midcap 400)
6
SH (ProShares Short
S&P 500)
5
REW (ProShares
UltraShort Technology)
7...
Why might money market mutual funds encourage risk-taking?
Why might money market mutual funds encourage risk-taking?
90% of mutual funds that are active and trying to “beat the market” do NOT succeed...
90% of mutual funds that are active and trying to “beat
the market” do NOT succeed over the long-term and yet close to 50%
of mutual fund assets are invested in these active funds. Why do
you think investors choose to invest this way?
Shares in money market mutual funds are priced on the basis of a. Net asset value...
Shares in money market mutual funds are priced on the basis
of
a. Net asset value
b. Amortized cost
c. Real-time values
d. The yield on 91-day Treasury bills
Discuss three functions of the money market. Describe three of functions of mutual funds.
Discuss three functions of the money market.
Describe three of
functions of mutual funds.
Why might a corporation seek to raise funds outside its local capital market? Answer Should not...
Why might a corporation seek to raise funds outside its local
capital market? Answer Should not be less than 500 words.
During the 1990s, American depositors dramatically increased the share of their funds in money market mutual...
During the 1990s, American depositors dramatically increased the
share of their funds in money market mutual fund accounts. Although
these accounts have restrictions (such as limited access to funds
and minimum deposit requirements), they offer depositors higher
interest rates versus standard checking. The widespread use of
financial instruments during the 1990s led to a decrease in money
demand because people held a smaller share of their deposits in
checkable accounts (demand deposits).
a. How would this shock affect the U....
Consider a duopolistic market in which the inverse demand curve is ?=50−2? and the short-run total...
Consider a duopolistic market in which the inverse demand curve
is ?=50−2? and the short-run total cost functions of the firms are
given by ????1=10+2?1 and ????2=12+8?2.
a. Suppose this market is analyzed using a Cournot model. Determine
the output level of each firm and the market price.
b. Suppose this market is analyzed using a Stackelberg model where
firm 2 is the leader and firm 1 is the follower. Determine the
output level of each firm and the market...
1. A(n) ________________ mutual fund invests funds in short-term securities like Treasury bills, jumbo CDs, and...
1. A(n)
________________ mutual fund invests funds in short-term securities
like Treasury bills, jumbo CDs, and commercial paper.
A. REIT
B. hybrid fund
C. closed-end investment
company
D. equity mutual fund
E. money market mutual fund
2. A(n)
__________________ has customer demand for the shares determining
the number of shares outstanding.
A. general
partnership
B. limited partnership
C. open-end
D. REIT
E. closed-end
3. A no-load mutual
fund:
A. has zero
operating expenses.
B. is typically marketed directly to
customers,...
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