Question

What is the primary characteristic of Mid/Small-cap Funds?

a.

Higher market capitalization

b.

Lower market capitalization compared to large-cap companies

c.

Steady performance in the market

d.

Lower volatility than large-cap peers

Answer: (b).Lower market capitalization compared to large-cap companies Explanation:Mid/Small-cap Funds target companies whose market capitalization is lower than that of large-cap companies.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the primary characteristic of Mid/Small-cap Funds?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the key feature of Equity-linked Savings Scheme (ELSS)?

Q. What is one of the advantages of mutual funds?

Q. How does diversification benefit investors in mutual funds?

Q. What is an advantage of mutual funds in terms of administration?

Q. What is an advantage of investing in mutual funds in terms of costs?

Q. In open-ended schemes, when can investors get their money back?

Q. How is the yearly return on a mutual fund calculated?

Q. What does Sharpe's Ratio measure in the evaluation of mutual fund performance?

Q. Who developed Sharpe's Ratio?

Q. What does a higher Sharpe's Ratio indicate in the context of mutual fund performance?

Q. What does a Sharpe's Ratio of 1 indicate?

Q. What does Jensen's Alpha Ratio measure in the context of mutual fund performance?

Q. Who developed Jensen's Alpha Ratio?

Q. What is the formula for calculating Jensen's Alpha Ratio?

Q. What does a positive alpha figure indicate in the context of Jensen's Alpha Ratio?

Q. What does Treynor Ratio measure in the evaluation of mutual fund performance?

Q. What does Fama's Net Selectivity Ratio measure in the evaluation of mutual fund performance?

Q. Who developed Fama's Net Selectivity Ratio?

Q. What does a positive value of Fama's Net Selectivity Ratio indicate?

Q. What does the negative value of Fama's Net Selectivity Ratio indicate?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!