Question 1

How is an asset allocation fund different from a balanced mutual fund?

Accepted Answer

Asset allocation funds seek to

Question 2

The mutual fund that invests in Treasury bills and very short-term notes and is considered practically risk free is the

Accepted Answer

A)  stock fund. 
B)  bond fund. 
C)  balanced fund. 
D)  life cycle fund. 
E)  money market fund. 
A)  stock fund. 
B)  bond fund. 
C)  balanced fund. 
D)  life cycle fund. 
E)  money market fund.

Question 3

A unit investment trust is a fixed pool of securities, generally municipal bonds, with each unit representing a proportionate ownership in that pool.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following funds would be the most appropriate investment for the average small investor?

Accepted Answer

A)  No-load open-end fund 
B)  No-load closed-end fund 
C)  Front-end load fund 
D)  Back-end load fund 
A)  No-load open-end fund 
B)  No-load closed-end fund 
C)  Front-end load fund 
D)  Back-end load fund

Question 5

Most small investors don't have the time, expertise, or desire to do the research necessary to invest in individual stocks therefore mutual funds are a good solution.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a benefit to investing in a mutual fund?

Accepted Answer

A)  Most small investors don't have the time, knowledge or desire to do the research necessary to purchase individual stocks. 
B)  Mutual fund transaction fees are considerably lower than the brokerage fees most small investors incur buying and selling individual stocks. 
C)  Most small investors want to be able to invest relatively small amounts of money on a regular basis. 
D)  All of the above are correct. 
E)  Only A and B are correct. 
A)  Most small investors don't have the time, knowledge or desire to do the research necessary to purchase individual stocks. 
B)  Mutual fund transaction fees are considerably lower than the brokerage fees most small investors incur buying and selling individual stocks. 
C)  Most small investors want to be able to invest relatively small amounts of money on a regular basis. 
D)  All of the above are correct. 
E)  Only A and B are correct.

Question 7

Which of the following statements is true regarding mutual fund load charges?

Accepted Answer

A)  Load funds perform better than no-load funds. 
B)  Back-end load funds perform better than no-load funds. 
C)  Load funds perform more poorly than back-end load funds. 
D)  No-load funds perform just as well as load funds. 
E)  none of the above 
A)  Load funds perform better than no-load funds. 
B)  Back-end load funds perform better than no-load funds. 
C)  Load funds perform more poorly than back-end load funds. 
D)  No-load funds perform just as well as load funds. 
E)  none of the above

Question 8

With target retirement funds the only decision you have to make is when you plan to retire.

Accepted Answer

A) True 
 B)False

Question 9

You purchased 100 shares of a fund for $15.50 per share. Its current NAV is 20.75 per share. There were no distributions. What is your total return?

Accepted Answer

A)  33.87% 
B)  22.33% 
C)  79.67% 
D)  25.51% 
A)  33.87% 
B)  22.33% 
C)  79.67% 
D)  25.51%

How is an asset allocation fund different from a balanced mutual fund?

The mutual fund that invests in Treasury bills and very short-term notes and is considered practically risk free is the

A unit investment trust is a fixed pool of securities, generally municipal bonds, with each unit representing a proportionate ownership in that pool.

Which of the following funds would be the most appropriate investment for the average small investor?

Most small investors don't have the time, expertise, or desire to do the research necessary to invest in individual stocks therefore mutual funds are a good solution.

Which of the following is a benefit to investing in a mutual fund?

Which of the following statements is true regarding mutual fund load charges?

With target retirement funds the only decision you have to make is when you plan to retire.

You purchased 100 shares of a fund for $15.50 per share. Its current NAV is 20.75 per share. There were no distributions. What is your total return?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 15: Mutual Funds: An Easy Way to Diversify

How is an asset allocation fund different from a balanced mutual fund?

The mutual fund that invests in Treasury bills and very short-term notes and is considered practically risk free is the

A unit investment trust is a fixed pool of securities, generally municipal bonds, with each unit representing a proportionate ownership in that pool.

Which of the following funds would be the most appropriate investment for the average small investor?

Most small investors don't have the time, expertise, or desire to do the research necessary to invest in individual stocks therefore mutual funds are a good solution.

Which of the following is a benefit to investing in a mutual fund?

Which of the following statements is true regarding mutual fund load charges?

With target retirement funds the only decision you have to make is when you plan to retire.

You purchased 100 shares of a fund for $15.50 per share. Its current NAV is 20.75 per share. There were no distributions. What is your total return?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters