An investor wishes to invest in small capitalised equities, either by (1) investing in a small capitalised equity index, OR (2) investing  in two active small capitalised equity funds - one that is a growth fund and the other is a value fund. Which of the following statement is incorrect regarding the selection between the two choices.Group of answer choicesSince a value and growth fund can be combined together, then it makes no difference in terms of performance.The two active funds must be carefully selected to ensure that fund managers have positive selection effect (the ability to identify mis-priced securities)Investor must consider the sector allocation within each active fund to ensure diversification between the two active fundsThe two active funds must be carefully selected to ensure that fund managers have positive allocation effect (the ability to identify mis-priced sectors)It is likely that the quality of fund management is better if the fund has been operating for a longer period of time

An investor wishes to choose between (1) two active Large Capitalized equity funds - A Large Capitalized  Growth Fund and a Large Capitalized Value fund, OR (2) An active Large Capitalized Blend fund. Which of the following statements is incorrect?Group of answer choicesA Growth fund manager specializes in generating active returns/Alphas by analyzing firms that are will grow at a rate higher than their peersA Blend Fund combines the advantages of both investment styles (Value and Growth)A Blend Fund may be biased towards either Value or Growth during a particular period.A Value fund manager specializes in generating active returns/Alphas by analyzing firms that are priced lower than their peers in the industry based on some form of relative pricing analysis such as Price to Earning ratioA Blend fund is actually an index fund and is not an active fund.

What is the primary objective of a growth-oriented mutual fund?  A. Preserve capital  B. Generate regular income  C. Achieve long-term capital appreciation  D. Provide stability and liquidity

When selecting an investment, which criterion relates to how quickly you can get back your invested funds if you want or need them?Multiple select question.LiquidityInvestment riskDurationYield

Multiple Choice QuestionWhich of the following is a more liquid investment?Multiple choice question.certificate of depositmutual fundsavings accountgovernment bond

Multiple Choice QuestionWhat is a benefit of an exchange-traded fund?Multiple choice question.similar to checking accounthighest available interest ratelow management feesminimum $50,000 investment