Principle of Econ (2) Student ID B12607017
112 Spring
李宇耀
Assignment 9 Name
Due Date: 2024/5/14
There are 4 pages and 6 questions in this assignment. The total number of points possi‐
ble is 100. Please submit your assignment before 10:00 on the due date on the NTU COOL.
Your submission has to be one pdf file, and the file name should be “Assignment X + Your
Name”. No delay submissions are accepted, but as long as you submit an non‐empty file,
you will get 100% of the total points.
1. (10 points) Please define the following terms.
(a) (5 points) Stock
A stock represents a share in the ownership of a company,
including a claim on the company's earnings and assets. As
such, stockholders are partial owners of the company. Fractional
shares of stock also represent ownership of a company, but at a
size smaller than a full share of common stock.
(b) (5 points) Mutual fund
A mutual fund is a company that pools money from many
investors and invests the money in securities such as stocks,
bonds, and short-term debt. The combined holdings of the
mutual fund are known as its portfolio. Investors buy shares in
mutual funds. Each share represents an investor’s part
ownership in the fund and the income it generates.
Principle of Econ (2) Assignment 9 – Page 2 of 4 Due Date: 2024/5/14
2. (10 points) Mankiw Chapter 27: Problems and Applications 2
A stock represents a share in the ownership of a company,
including a claim on the company's earnings and assets. As
such, stockholders are partial owners of the company.
Fractional shares of stock also represent ownership of a
company, but at a size smaller than a full share of common
stock. A mutual fund is a company that pools money from
many investors and invests the money in securities such as
stocks, bonds, and short-term debt. The combined holdings of
the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s
part ownership in the fund and the income it generates.
3. (20 points) Mankiw Chapter 27: Problems and Applications 3
A stock represents a share in the ownership of a company,
including a claim on the company's earnings and assets. As
such, stockholders are partial owners of the company.
Fractional shares of stock also represent ownership of a
company, but at a size smaller than a full share of common
stock. A mutual fund is a company that pools money from
many investors and invests the money in securities such as
stocks, bonds, and short-term debt. The combined holdings of
the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s
part ownership in the fund and the income it generates.
Principle of Econ (2) Assignment 9 – Page 3 of 4 Due Date: 2024/5/14
4. (20 points) Mankiw Chapter 27: Problems and Applications 5
A stock represents a share in the ownership of a company,
including a claim on the company's earnings and assets. As
such, stockholders are partial owners of the company.
Fractional shares of stock also represent ownership of a
company, but at a size smaller than a full share of common
stock. A mutual fund is a company that pools money from
many investors and invests the money in securities such as
stocks, bonds, and short-term debt. The combined holdings of
the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s
part ownership in the fund and the income it generates.
5. (20 points) Mankiw Chapter 27: Problems and Applications 6
A stock represents a share in the ownership of a company,
including a claim on the company's earnings and assets. As
such, stockholders are partial owners of the company.
Fractional shares of stock also represent ownership of a
company, but at a size smaller than a full share of common
stock. A mutual fund is a company that pools money from
many investors and invests the money in securities such as
stocks, bonds, and short-term debt. The combined holdings of
the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s
part ownership in the fund and the income it generates.
Principle of Econ (2) Assignment 9 – Page 4 of 4 Due Date: 2024/5/14
6. (20 points) Mankiw Chapter 27: Problems and Applications 9
A stock represents a share in the ownership of a company,
including a claim on the company's earnings and assets. As
such, stockholders are partial owners of the company.
Fractional shares of stock also represent ownership of a
company, but at a size smaller than a full share of common
stock. A mutual fund is a company that pools money from
many investors and invests the money in securities such as
stocks, bonds, and short-term debt. The combined holdings of
the mutual fund are known as its portfolio. Investors buy
shares in mutual funds. Each share represents an investor’s
part ownership in the fund and the income it generates.
