MoneyKraft

1. A fund's mean excess return is 14% and standard deviation of excess return is 8%. The information ratio for the fund is

0.57

1.75

2. A fund manager is overweight banking sector. He will generate an alpha over his benchmark if

Banking stocks fall; benchmark index falls more

Banking stocks rise; benchmark rises equally

Banking stocks rise; benchmark index rises more

3. In a situation where daily values can fluctuate heavily, it is appropriate if we calculate the return as

Simple annualized return

Compounded annualized return

Simple absolute return

4. Which is the best return representation for three-year returns from a debt fund?

Simple absolute return

Simple annualised return

Compounded annual growth rate

5. Increasing the number of securities in a portfolio is likely to result in

Lower market risk

Lower overall risk

Lower company specific risk

Borrowing against your mf units

can you borrow against your mutual fund units?

You can borrow money against mutual fund units placed under lien with your lender. Watch this investor education video by Moneykraft.

AUTHOR(s):Shreeja Thirani

good video informative and clear one to understand