Question 1

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Accepted Answer

A)  investment advisor 
B)  custodian 
C)  transfer agent 
D)  distributor 
E)  money manager 
A)  investment advisor 
B)  custodian 
C)  transfer agent 
D)  distributor 
E)  money manager

Question 2

Investment company earnings result solely from dividends.

Accepted Answer

A) True 
 B)False

Question 3

RACE Mutual fund is a no-load fund that had a net asset value one year ago of $25.60.Today the NAV is $28.83.During the year dividends of $0.72 were paid out and a capital gains distribution of $0.65 was made.Calculate the approximate yield for RACE.(Show all work.)

Accepted Answer

The answer of RACE Mutual fund is a no-load fund...

Question 4

In the Wall Street Journal's listing of mutual funds,a "t" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Accepted Answer

A)  front-end load 
B)  back-end load 
C)  12b-1 fee 
D)  management fee 
E)  b and c 
A)  front-end load 
B)  back-end load 
C)  12b-1 fee 
D)  management fee 
E)  b and c

Question 5

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

Accepted Answer

A) True 
 B)False

Question 6

A real estate investment trust that invests only in mortgages is called an equity trust.

Accepted Answer

A) True 
 B)False

Question 7

Advantages of exchange traded funds over mutual funds include a broader market focus.

Accepted Answer

A) True 
 B)False

Question 8

The price an investor can sell his shares of an open-end mutual fund share is the net asset value.

Accepted Answer

A) True 
 B)False

Question 9

Investment company earnings come from

Accepted Answer

A)  capital gains. 
B)  dividend from stocks. 
C)  interest from bonds. 
D)  interest and dividends. 
E)  interest, dividends, and capital gains. 
A)  capital gains. 
B)  dividend from stocks. 
C)  interest from bonds. 
D)  interest and dividends. 
E)  interest, dividends, and capital gains.

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Index funds,while trying to match market performance,consistently [perform well | perform poorly] against market benchmarks.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

For most investors,the best way to deal in foreign securities is through an international mutual fund.

Accepted Answer

A) True 
 B)False

Question 12

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

Asset allocation funds invest entirely in U.S.and foreign stock and bonds.

Accepted Answer

A) True 
 B)False

Question 14

Equity-income funds emphasize capital appreciation in their investment goals.

Accepted Answer

A) True 
 B)False

Question 15

Mutual funds may be classified by the types of securities they purchase.

Accepted Answer

A) True 
 B)False

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Value funds look for stocks with relatively [high | low] P/E ratios.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

The individual manager of a mutual fund has little to do with a fund's success.

Accepted Answer

A) True 
 B)False

Question 18

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

Accepted Answer

A)  management fee. 
B)  back-end load. 
C)  transaction fee. 
D)  12(b)-1 fee. 
E)  low-load. 
A)  management fee. 
B)  back-end load. 
C)  transaction fee. 
D)  12(b)-1 fee. 
E)  low-load.

Question 19

Index funds are actively managed.

Accepted Answer

A) True 
 B)False

Question 20

A fund that invests only in a particular industry would be a ____ fund.

Accepted Answer

A)  money market 
B)  maximum capital 
C)  sector 
D)  balanced 
E)  bond 
A)  money market 
B)  maximum capital 
C)  sector 
D)  balanced 
E)  bond

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Investment company earnings result solely from dividends.

RACE Mutual fund is a no-load fund that had a net asset value one year ago of $25.60.Today the NAV is $28.83.During the year dividends of $0.72 were paid out and a capital gains distribution of $0.65 was made.Calculate the approximate yield for RACE.(Show all work.)

In the Wall Street Journal's listing of mutual funds,a "t" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

A real estate investment trust that invests only in mortgages is called an equity trust.

Advantages of exchange traded funds over mutual funds include a broader market focus.

The price an investor can sell his shares of an open-end mutual fund share is the net asset value.

Investment company earnings come from

For most investors,the best way to deal in foreign securities is through an international mutual fund.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Asset allocation funds invest entirely in U.S.and foreign stock and bonds.

Equity-income funds emphasize capital appreciation in their investment goals.

Mutual funds may be classified by the types of securities they purchase.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Value funds look for stocks with relatively [high | low] P/E ratios.

The individual manager of a mutual fund has little to do with a fund's success.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

Index funds are actively managed.

A fund that invests only in a particular industry would be a ____ fund.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters

Exam 13: Investing in Mutual Funds

A(n)____ sells fund shares,either directly to the public or through certain authorized dealers

Investment company earnings result solely from dividends.

RACE Mutual fund is a no-load fund that had a net asset value one year ago of $25.60.Today the NAV is $28.83.During the year dividends of $0.72 were paid out and a capital gains distribution of $0.65 was made.Calculate the approximate yield for RACE.(Show all work.)

In the Wall Street Journal's listing of mutual funds,a "t" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

A mutual fund quotation shows NAV $3.16,offer $3.80.If you want to buy 100 shares,you will pay $380.

A real estate investment trust that invests only in mortgages is called an equity trust.

Advantages of exchange traded funds over mutual funds include a broader market focus.

The price an investor can sell his shares of an open-end mutual fund share is the net asset value.

Investment company earnings come from

For most investors,the best way to deal in foreign securities is through an international mutual fund.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Asset allocation funds invest entirely in U.S.and foreign stock and bonds.

Equity-income funds emphasize capital appreciation in their investment goals.

Mutual funds may be classified by the types of securities they purchase.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Value funds look for stocks with relatively [high | low] P/E ratios.

The individual manager of a mutual fund has little to do with a fund's success.

An annual fee charged by some mutual funds to cover marketing and distribution expenses is the

Index funds are actively managed.

A fund that invests only in a particular industry would be a ____ fund.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters