Exam 4: Mutual Funds and Other Investment Companies

Patty O Furniture purchased 100 shares of Green Isle mutual fund at a net asset value of $42 per share.During the year, Patty received dividend income distributions of $2.00 per share and capital gains distributions of $4.30 per share.At the end of the year, the shares had a net asset value of $40 per share.What was Patty's rate of return on this investment?

Pinnacle Fund had year-end assets of $825,000,000 and liabilities of $25,000,000.If Pinnacle's NAV was $32.18, how many shares must have been held in the fund?

A mutual fund had NAV per share of $37.12 on January 1, 2016.On December 31 of the same year, the fund's rate of return for the year was 11.0%.Income distributions were $2.26, and the fund had capital gain distributions of $1.64.Without considering taxes and transactions costs, what ending NAV would you calculate?

A mutual fund had NAV per share of $23.00 on January 1, 2016.On December 31 of the same year, the fund's NAV was $23.15.Income distributions were $0.63, and the fund had capital gain distributions of $1.26.Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?

Pools of money invested in a portfolio that is fixed for the life of the fund are called

Funds are commonly classified by

A mutual fund had year-end assets of $560,000,000 and liabilities of $26,000,000.There were 23,850,000 shares in the fund at year end.What was the mutual fund's net asset value?

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Dow Jones Industrials should choose

A mutual fund had year-end assets of $750,000,000 and liabilities of $7,500,000.There were 40,000,000 shares in the fund at year end.What was the mutual fund's net asset value?

A mutual fund had year-end assets of $250,000,000 and liabilities of $4,000,000.There were 3,750,000 shares in the fund at year end.What was the mutual fund's net asset value?

Which one of the following statements regarding closed-end mutual funds is false?

You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 5.75%.If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio was 1.25%, your return if you sold the fund at the end of the year would be

A mutual fund had year-end assets of $700,000,000 and liabilities of $7,000,000.There were 40,150,000 shares in the fund at year end.What was the mutual fund's net asset value?

Which one of the following statements regarding open-end mutual funds is false?

Which of the following statements about money market mutual funds is true?

You purchased shares of a mutual fund at a price of $17 per share at the beginning of the year and paid a front-end load of 5.0%.If the securities in which the fund invested increased in value by 12% during the year, and the fund's expense ratio was 1.0%, your return if you sold the fund at the end of the year would be

Which of the following is not an advantage of owning mutual funds?

Assume that you purchased shares of a mutual fund at a net asset value of $14.50 per share.During the year, you received dividend income distributions of $0.27 per share and capital gains distributions of $0.65 per share.At the end of the year, the shares had a net asset value of $13.74 per share.What was your rate of return on this investment?

A mutual fund had NAV per share of $19.00 on January 1, 2016.On December 31 of the same year, the fund's NAV was $19.14.Income distributions were $0.57, and the fund had capital gain distributions of $1.12.Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year?

Investors in closed-end funds who wish to liquidate their positions must