About the municipal bonds

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Reference no: EM131861372

Municipal bonds:

a. are totally risk free

b. generally have higher coupon rate than corporate bonds

c. pay interest that is federally tax free

d. are rarely callable

e. are free of default risk

2. Bob is evaluating a mutual fund. He noticed that the “Alpha” of the fund is 5. The fund’s benchmark, the S & P 500, has a return for the year of 10%. What should the return on the mutual fund be?

a. 5%

b. 10.5%

c. 50%

d. 2%

e. 15%

Reference no: EM131861372

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