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Financial Terms related to Funds
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Funds
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
FUNDS
12b 1 funds
• Mutual funds that do not charge an upfront or back-end commission, but instead
take out up to 1.
25% of average daily fund assets each year to cover the costs of
selling and marketing shares, an arrangement allowed by the SEC s Rule 12b-I
(passed in 1980).
Beta equation mutual funds
• The beta of a fund is determined as follows: [(n) (sum of (xy)) ]-[ (sum of x) (sum of
y)] [(n) (sum of (xx)) ]-[ (sum of x) (sum of x)] where: n = # of observations (36
months) x = rate of return for the S&P 500 Index y = rate of return for the fu
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