Question 1

You are considering an investment in a mutual fund with a 3% load and an expense ratio of 0.4%. You can
invest instead in a bank CD paying 6% interest.
a. If you plan to invest for 2 years, what annual rate of return must the fund portfolio earn
for you to be better off in the fund than in the CD? Assume annual compounding of
returns.
b. How does your answer change if you plan to invest for 6 years? Why does your answer
change?
c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 0.8% per year.
What annual rate of return must the fund portfolio earn for you to be better off in the fund
than in the CD? Does your answer in this case depend on your time horizon?

Question 2

The Investments Fund sells Class A shares with a front-end load of 5% and Class B shares
with 12b-1 fees of 0.5% annually as well as back-end load fees that start at 4% and fall by 1%
for each full year the investor holds the portfolio (until the fifth year). Assume the portfolio
rate of return net of operating expenses is 10% annually. If you plan to sell the fund after
4 years, are Class A or Class B shares the better choice for you? What if you plan to sell
after 15 years?
Question 3

Information on the contribution of each depository member up to the time of using settlement support
fund is as follows: (unit: million VND)

Member A B C D E F
Contribution 240 350 150 400 300 500
As a result of clearing on 6/8/N, D has to pay 900 million, on D's account only has 500 million, D uses
settlement support fund within 8 days.
Requirement:
a. Calculate the amount to be deducted from other depository members.
b. Calculate interest D has to pay each member in the first 5 days and the next 3 days.
Said: Interest rate on using fund: 0.1%/day for the first 5 days; 0.15%/day for the next 3 days (from the
6th day).
Question 4

An investor sells short 500 Telecom shares at the current market price of $30 per share.

Request:

a. How much in cash or securities must the investor put into his account if the initial margin
ratio is 60% of the value of the short position?
 b. How much the stock price will increase before the investor receives a margin call if the
maintenance margin ratio is 30% of the value of the short position?
Questiom 5

Analyze the role of securities investment funds in the stock market. What types of investment funds are
there currently on the Vietnamese stock market?