Exam 13: Investing in Mutual Funds

A(n)____ actually runs the portfolio and makes the buy and sell decisions

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. -[Open-end | Closed-end] mutual funds always redeem shares at NAV.

Generally speaking,socially responsible funds abstain from investing in alcohol,gambling,or tobacco stocks.

Indexed funds have high realized capital gains.

Closed-end mutual funds can trade at either a discount or a premium from their net asset value.

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. -The NAV indicates the guaranteed price at which you could [buy | redeem] your mutual fund shares in a load fund.

An investor with a small amount of money should stick to using loaded-funds instead of no-load funds.

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. -A fund that invests only in utility stocks could be classified as [an industry | a sector] fund.

Aggressive growth funds typically buy stocks with high PE ratios and stocks with volatile price fluctuations.

Mutual funds are actually comprised of two or more companies.

Mutual fund performance is usually evaluated by viewing a given size investment for a certain time period.

Which of the following is not a source of mutual fund returns

The price per share of a closed-end investment fund could be lower than its NAV.

An open-end investment company is commonly known as a mutual fund.