--%>
Assignment Help - homework help

Explain few Spanish mutual funds outperform their benchmark

Is this true that very little Spanish mutual funds outperform their benchmark? Isn’t this strange?

E

Expert

Verified

Yes. Throughout the period 1998 to 2007, only 30 of the 935 mutual funds along with over 10 years of history acquired a higher return than the benchmark used; and only two of them acquired a higher return than the Overall Index of the Madrid Stock Exchange.

In 1998 to 2007 and 1992 to 2007, the average returns on mutual funds were lower than the returns on state bonds at any term seem. Throughout the past 10 years, the average return of the funds was lower than inflation. In spite of these results, on 31st December 2007, 8,264,240 shareholders had €238.7 billion invested into the 2,907 existing investment funds.

   Related Questions in Corporate Finance

  • Q : Variance of a portfolio The variance of

    The variance of a portfolio of 40 stocks will be the addition of _______ variance terms and _______ covariance terms. A) 40; 1560B) 40; 1600C) 80; 40D) 1600; 40

    		•
  • Q : Is cash flow is a flow of cash to

    The often known as "cash flow" that is net income plus depreciation, is a flow of cash, but is this a flow to the company or to the shareholders?

    		•
  • Q : What is the impact of auto portfolio

    What is the impact of auto portfolio into the quotation of the shares?

    		•
  • Q : Explain company creates value for its

    Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?

    		•
  • Q : APR of Loan When you take out an $8,000

    When you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, then what is the APR of loan?

    		•
  • Q : What is the value of stock Brushy

    Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 5% per year. I

    		•
  • Q : Does the book value of the debt

    Does the book value of the debt all the time coincide with its market value?

    		•
  • Q : Finance You expect KT industries (KTI)

    You expect KT industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12%. The value of a share of KTI's stock is clos

    		•
  • Q : Attributes of debt securities What are

    What are the Attributes of debt securities?

    		•
  • Q : Why required return cannot computed by

    Why can we not compute the required return (Ke) by the Gordon-Shapiro model [P0 = Div0 (1+g) / (Ke – g)] in place of using the CAPM? As we identify the current dividend (Div0) and the current share price (P0), we can acquire the growth rate of the dividend by th

    		•