NO.PZ2023091802000192
问题如下:
An asset management firm is planning to launch an open-end mutual fund. Risk managers at the firm are concerned about the potential impact of undesirable trading behaviors on the fund. Which of the following correctly identifies such an undesirable behavior and a potential negative impact of this behavior?
选项:
A.Accepting large buy orders during market trading hours results in unfair treatment of other shareholders of the fund.
Allowing frequent buying and selling by large investors could increase costs for all of the shareholders of the fund.
Prohibiting fund managers from making personal trades in stocks held by the fund could reduce the fund’s returns.
Directing portfolio trades to a brokerage firm that does not offer the mutual fund’s shares to its clients could increase reputational risk.
解释:
B is correct. Frequent buying and selling of fund shares can be done in an attempt at market timing and could increase costs to shareholders as the fund’s assets under management will change frequently and require more trading of underlying shares to handle redemptions and new purchases.
A is incorrect. Accepting large buy orders before the close of trading is a normal course of business. Accepting or changing orders after the close of trading (i.e. late trading) is an undesirable and potentially criminal behavior.
C is incorrect. Prohibiting managers from trading personally in stocks held by the fund reduces the potential for front running, which is when a trader buys or sells shares in a personal account before a large trade in the same direction by the fund. As such, it helps eliminate undesirable and illegal behavior.
D is incorrect. This avoids the problem of directed brokerage, another undesirable behavior.
