1. All of the following are advantages to investing in open end investment companies except:
A-They offer an easy and economical method of diversifying a portfolio.
B-They trade at a premium or discount to their net asset value.
C-They offer a low cost method of investing.
D-The returns are typically higher than the average investor's returns.
2. Your firm just completed a 2 for 1 stock split, resulting in a 10% increase to $220 million in the market value of the firm’s shares. The firm has 4 million shares of stock outstanding after the split. What is the stock price before the split?
A) $110.00
B) $55.00
C) $50.00
D) $100.00
E) $27.50