Finance and accounting
i) Distinguish between an investment trust and unit trust, using examples of each. What is a hedge fund? find an example and explain how they are different to other types of funds.
ii) A large number of index tracker funds have been set up (i.e. Virgin Tracker Fund). What is the purpose of these funds? What are the risks involved in investing in this type of fund. Given the recent performance of these funds would you consider them to be a useful investment?
(25 marks)
Choose 3 companies from the FTSE 100 and calculate the return over 10 trading days (Now compare the returns with each other, and with the return on the FTSE 100 Index. Suggest possible reasons for the differences, eg any news on the companies.
(25 marks)