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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?
A
Accepting large buy orders during market trading hours results in unfair treatment of other shareholders of the fund.
B
Allowing frequent buying and selling by large investors could increase costs for all of the shareholders of the fund.
C
Prohibiting fund managers from making personal trades in stocks held by the fund could reduce the fund's returns.
D
Directing portfolio trades to a brokerage firm that does not offer the mutual fund's shares to its clients could increase reputational risk.