Topic_4_E2 - Topic 4 Exercise 2 Mutual Funds Exchange...

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Topic 4 Exercise 2 Mutual Funds Exchange Traded Funds In 1993 a new instrument was introduced that has significantly changed investment alternatives that are available to individuals and institutions. That instrument was the exchange traded fund (ETFs). Since the initial offering based on the broad Standard and Poor’s 500 Index products have been developed for sectors or components, international indexes and other broad market indexes. As of April, 2002, there were 76 available exchange-traded funds . These ETFs allow an investor the opportunity to trade instruments that are essentially indexed funds. Futures and Options on Index products, along with the ETFs, give investors a means to manage risk and speculate on movements in sectors—as well as the broad market. Barclays Global Investors has been a major developer of exchange-traded funds called iShares. Barclay’s site includes a section called Dr. Index, which has a short course of ETFs called ETFs 101 . After reviewing this material answer the following questions:
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Topic_4_E2 - Topic 4 Exercise 2 Mutual Funds Exchange...

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