1. Do the valuation models accurately reflects the price of stock in the secondary market. Why? Why not?
2. You invest $6025 in a fund that has a 4.9% load. If the net asset value is $11.23, how many shares will you own?
3. A stock's returns over the past 3 quarters were 29%, 2%, and 7%. What is the cumulative wealth index assuming a base value of $1?