Question 1

Sometimes,when you purchase shares directly from the mutual fund company itself,there will not be a sales load.

Accepted Answer

A) True 
 B)False

Question 2

Mutual funds sold by a bank are insured by the federal government.

Accepted Answer

A) True 
 B)False

Question 3

Compare and contrast open-end and closed-end mutual funds.

Accepted Answer

Open-end funds can literally issue as ma

Question 4

Which of the following services do ETFs offer?

Accepted Answer

A)  Automatic reinvestment of dividends, interest, and capital gains 
B)  Bookkeeping and tax help 
C)  Phone and Internet switching 
D)  All of the above 
E)  None of the above 
A)  Automatic reinvestment of dividends, interest, and capital gains 
B)  Bookkeeping and tax help 
C)  Phone and Internet switching 
D)  All of the above 
E)  None of the above

Question 5

Hedge fund managers charge very high fees,generally taking ________ of the assets under management (even when the fund loses money)along with ________ of the profits-and some take even more.

Accepted Answer

A)  1 percent; 10 percent 
B)  2 percent; 10 percent 
C)  2 percent; 20 percent 
D)  5 percent; 25 percent 
A)  1 percent; 10 percent 
B)  2 percent; 10 percent 
C)  2 percent; 20 percent 
D)  5 percent; 25 percent

Question 6

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

Accepted Answer

A)  Serial risk 
B)  Systematic risk 
C)  Unsystematic risk 
D)  None of the above is correct. 
A)  Serial risk 
B)  Systematic risk 
C)  Unsystematic risk 
D)  None of the above is correct.

Question 7

Explain how sales loads and fund expenses can negatively impact your return on investment in a mutual fund.

Accepted Answer

The sales load and fund expenses are sub

Question 8

You purchased 1,000 shares of fund ABC for $35.00 NAV per share.You elected the dividend reinvestment plan and had all dividend and capital gains distributions reinvested in additional shares.You just closed your account and sold 1,100 shares for $30 NAV.What was your total return on this investment?

Accepted Answer

A)  -6.06% 
B)  -5.71% 
C)  5.71% 
D)  6.06% 
A)  -6.06% 
B)  -5.71% 
C)  5.71% 
D)  6.06%

Question 9

A source of third-party information like Morningstar or Yahoo! Finance is typically biased towards certain mutual fund companies.

Accepted Answer

A) True 
 B)False

Question 10

What are the two broad types of risks that are associated with investing? Can you avoid them by investing in Mutual Funds?

Accepted Answer

The two broad types of risks associated

Question 11

Brian and Kallie are looking for investments that provide steady income to live on,moderate growth in capital,and moderate stability in their investments.They should look into balanced mutual funds.

Accepted Answer

A) True 
 B)False

Question 12

Why would someone want to give serious attention to investing in mutual funds? At the same time,why would you not invest in them?

Accepted Answer

Mutual funds on the whole serve to level

Question 13

In what ways do unit investment trusts and real estate investment trusts resemble mutual funds?

Accepted Answer

UITs are a pool of investments,generally

Question 14

What are ETFs and what are their advantages?

Accepted Answer

An ETF is a hybrid type investment that

Question 15

What is the purpose of a Target Retirement fund and who would benefit from it?

Accepted Answer

A target retirement fund is designed to

Question 16

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 17

Which of the following funds protect you from systematic risk?

Accepted Answer

A)  S&P 500 Index fund 
B)  Growth fund 
C)  Balanced fund 
D)  All of the above 
E)  None of the above 
A)  S&P 500 Index fund 
B)  Growth fund 
C)  Balanced fund 
D)  All of the above 
E)  None of the above

Question 18

A mutual fund's expense ratio compares the fund's expenses to its total assets.

Accepted Answer

A) True 
 B)False

Question 19

Of the different types of mutual funds,________ are by far the most popular,and now account for half of all mutual funds.

Accepted Answer

A)  money market mutual funds 
B)  stock mutual funds 
C)  balanced mutual funds 
D)  asset allocation funds 
E)  bond funds 
A)  money market mutual funds 
B)  stock mutual funds 
C)  balanced mutual funds 
D)  asset allocation funds 
E)  bond funds

Question 20

The trade-off for mutual fund diversification is lower-than-market performance.

Accepted Answer

A) True 
 B)False

Sometimes,when you purchase shares directly from the mutual fund company itself,there will not be a sales load.

Mutual funds sold by a bank are insured by the federal government.

Compare and contrast open-end and closed-end mutual funds.

Which of the following services do ETFs offer?

Hedge fund managers charge very high fees,generally taking of the assets under management (even when the fund loses money)along with of the profits-and some take even more.

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

Explain how sales loads and fund expenses can negatively impact your return on investment in a mutual fund.

A source of third-party information like Morningstar or Yahoo! Finance is typically biased towards certain mutual fund companies.

What are the two broad types of risks that are associated with investing? Can you avoid them by investing in Mutual Funds?

Brian and Kallie are looking for investments that provide steady income to live on,moderate growth in capital,and moderate stability in their investments.They should look into balanced mutual funds.

Why would someone want to give serious attention to investing in mutual funds? At the same time,why would you not invest in them?

In what ways do unit investment trusts and real estate investment trusts resemble mutual funds?

What are ETFs and what are their advantages?

What is the purpose of a Target Retirement fund and who would benefit from it?

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

Which of the following funds protect you from systematic risk?

A mutual fund's expense ratio compares the fund's expenses to its total assets.

Of the different types of mutual funds,________ are by far the most popular,and now account for half of all mutual funds.

The trade-off for mutual fund diversification is lower-than-market performance.

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

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 14: Mutual Funds: An Easy Way to Diversify

Sometimes,when you purchase shares directly from the mutual fund company itself,there will not be a sales load.

Mutual funds sold by a bank are insured by the federal government.

Compare and contrast open-end and closed-end mutual funds.

Which of the following services do ETFs offer?

Hedge fund managers charge very high fees,generally taking ________ of the assets under management (even when the fund loses money)along with ________ of the profits-and some take even more.

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

Explain how sales loads and fund expenses can negatively impact your return on investment in a mutual fund.

A source of third-party information like Morningstar or Yahoo! Finance is typically biased towards certain mutual fund companies.

What are the two broad types of risks that are associated with investing? Can you avoid them by investing in Mutual Funds?

Brian and Kallie are looking for investments that provide steady income to live on,moderate growth in capital,and moderate stability in their investments.They should look into balanced mutual funds.

Why would someone want to give serious attention to investing in mutual funds? At the same time,why would you not invest in them?

In what ways do unit investment trusts and real estate investment trusts resemble mutual funds?

What are ETFs and what are their advantages?

What is the purpose of a Target Retirement fund and who would benefit from it?

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

Which of the following funds protect you from systematic risk?

A mutual fund's expense ratio compares the fund's expenses to its total assets.

Of the different types of mutual funds,________ are by far the most popular,and now account for half of all mutual funds.

The trade-off for mutual fund diversification is lower-than-market performance.

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

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

Hedge fund managers charge very high fees,generally taking of the assets under management (even when the fund loses money)along with of the profits-and some take even more.