Questions from Financial Markets

Q: Explain how the interest rate risk of finance companies differs from that

Explain how the interest rate risk of finance companies differs from that of savings institutions.

Q: According to research, have mutual funds outperformed the market? Explain

According to research, have mutual funds outperformed the market? Explain. Would mutual funds be attractive to some investors even if they are not expected to outperform the market? Explain.

Q: Explain the relative risk of the various types of securities in which

Explain the relative risk of the various types of securities in which a money market fund may invest.

Q: Is the value of a money market fund or a bond fund

Is the value of a money market fund or a bond fund more susceptible to increasing interest rates? Explain.

Q: Explain why the market for auction-rate securities suffered in 2008

Explain why the market for auction-rate securities suffered in 2008.

Q: Explain why some hedge funds failed as a result of the credit

Explain why some hedge funds failed as a result of the credit crisis of 2008-s009.

Q: Explain the difference between equity REITs and mortgage REITs. Which type

Explain the difference between equity REITs and mortgage REITs. Which type would likely be a better hedge against high inflation? Why?

Q: How do open-end mutual funds differ from closed-end

How do open-end mutual funds differ from closed-end funds?

Q: Explain the difference between load and no-load mutual funds.

Explain the difference between load and no-load mutual funds.

Q: Like mutual funds, commercial banks and stock-owned savings institutions

Like mutual funds, commercial banks and stock-owned savings institutions sell shares; yet, proceeds received by mutual funds are used in a different way. Explain.