Question 1

There are dissimilarities between U.S.government,GNMA,municipal,and corporate bond funds.Please point them out.

Accepted Answer

The major difference stems from the bond

Question 2

The investor services that most mutual funds offer include

Accepted Answer

A)  bookkeeping services. 
B)  checking accounts. 
C)  automatic systems to add to or withdraw from your account. 
D)  All of the above are correct. 
E)  All but B are correct 
A)  bookkeeping services. 
B)  checking accounts. 
C)  automatic systems to add to or withdraw from your account. 
D)  All of the above are correct. 
E)  All but B are correct

Question 3

According to the Keown book,________ are by far the most popular funds,accounting for more than half of all mutual funds.

Accepted Answer

A)  equity funds 
B)  bond funds 
C)  hybrid funds 
D)  money market funds 
A)  equity funds 
B)  bond funds 
C)  hybrid funds 
D)  money market funds

Question 4

What are the tax liabilities concerning investing in a mutual fund?

Accepted Answer

There may be a tax liability due on the

Question 5

You purchased 500 shares in a mutual fund for $32 NAV.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 550 shares for $48 NAV.What was your total return on this investment?

Accepted Answer

A)  24.03% 
B)  34.29% 
C)  50.86% 
D)  65.00% 
A)  24.03% 
B)  34.29% 
C)  50.86% 
D)  65.00%

Question 6

The process of buying a mutual fund involves determining your investment goals,identifying funds that meet your objectives,and evaluating those funds.

Accepted Answer

A) True 
 B)False

Question 7

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.

Accepted Answer

A)  growth-and-income 
B)  sector 
C)  life cycle 
D)  asset allocation 
E)  bond 
A)  growth-and-income 
B)  sector 
C)  life cycle 
D)  asset allocation 
E)  bond

Question 8

Why is it important to determine what investment goals you are trying to achieve before you invest in a mutual fund?

Accepted Answer

A)  The mutual fund company may attempt to change your goals to meet their fund offerings. 
B)  You must provide the mutual fund company with your defined goals before they allow you to purchase shares. 
C)  You must look for a mutual fund with the same or similar investment goals that you have in order to find an appropriate fund. 
D)  All of the above are correct. 
E)  Only A and B are correct. 
A)  The mutual fund company may attempt to change your goals to meet their fund offerings. 
B)  You must provide the mutual fund company with your defined goals before they allow you to purchase shares. 
C)  You must look for a mutual fund with the same or similar investment goals that you have in order to find an appropriate fund. 
D)  All of the above are correct. 
E)  Only A and B are correct.

Question 9

When comparing which mutual fund to invest in,which of the following would be important to consider?

Accepted Answer

A)  Load 
B)  Net asset value 
C)  Expense ratio 
D)  All of the above are correct. 
E)  Only A and C are correct. 
A)  Load 
B)  Net asset value 
C)  Expense ratio 
D)  All of the above are correct. 
E)  Only A and C are correct.

Question 10

Explain what the three 'classes' of a mutual fund shares are all about.

Accepted Answer

There is actually only one mutual fund b

Question 11

Money market mutual funds have check writing privileges.

Accepted Answer

A) True 
 B)False

Question 12

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 13

When you own shares in a mutual fund you make money in which of the following ways?

Accepted Answer

A)  As the value of all of the securities held by the mutual fund increase, the value of each mutual fund share also increases. 
B)  If a fund receives interest or dividends from its holdings this income is passed on to share holders. 
C)  If the fund sells a security for more than it originally paid for it, the shareholders receive this in the form of capital gains. 
D)  You receive a portion of the commissions that the fund manager charges for trades. 
E)  Only A, B and C are correct. 
A)  As the value of all of the securities held by the mutual fund increase, the value of each mutual fund share also increases. 
B)  If a fund receives interest or dividends from its holdings this income is passed on to share holders. 
C)  If the fund sells a security for more than it originally paid for it, the shareholders receive this in the form of capital gains. 
D)  You receive a portion of the commissions that the fund manager charges for trades. 
E)  Only A, B and C are correct.

Question 14

An open-end mutual fund has a fixed number of shares which are sold by the mutual fund at its inception.

Accepted Answer

A) True 
 B)False

Question 15

Do the advantages of investing in a Mutual Fund outweigh the disadvantages for the average small investor?

Accepted Answer

A case can be made that the advantages t

Question 16

Suppose that the current value of all of a mutual fund's holdings is determined to be $750 million.The fund's liabilities are $125 million and it grew at 20% from last year.It currently has 45 million shares outstanding.What is the fund's NAV?

Accepted Answer

A)  $12.00 per share 
B)  $13.89 per share 
C)  $14.40 per share 
D)  $16.80 per share 
A)  $12.00 per share 
B)  $13.89 per share 
C)  $14.40 per share 
D)  $16.80 per share

There are dissimilarities between U.S.government,GNMA,municipal,and corporate bond funds.Please point them out.

The investor services that most mutual funds offer include

According to the Keown book,________ are by far the most popular funds,accounting for more than half of all mutual funds.

What are the tax liabilities concerning investing in a mutual fund?

You purchased 500 shares in a mutual fund for $32 NAV.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 550 shares for $48 NAV.What was your total return on this investment?

The process of buying a mutual fund involves determining your investment goals,identifying funds that meet your objectives,and evaluating those funds.

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.

Why is it important to determine what investment goals you are trying to achieve before you invest in a mutual fund?

When comparing which mutual fund to invest in,which of the following would be important to consider?

Explain what the three 'classes' of a mutual fund shares are all about.

Money market mutual funds have check writing privileges.

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

When you own shares in a mutual fund you make money in which of the following ways?

An open-end mutual fund has a fixed number of shares which are sold by the mutual fund at its inception.

Do the advantages of investing in a Mutual Fund outweigh the disadvantages for the average small investor?

Suppose that the current value of all of a mutual fund's holdings is determined to be $750 million.The fund's liabilities are $125 million and it grew at 20% from last year.It currently has 45 million shares outstanding.What is the fund's NAV?

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

There are dissimilarities between U.S.government,GNMA,municipal,and corporate bond funds.Please point them out.

The investor services that most mutual funds offer include

According to the Keown book,________ are by far the most popular funds,accounting for more than half of all mutual funds.

What are the tax liabilities concerning investing in a mutual fund?

You purchased 500 shares in a mutual fund for $32 NAV.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 550 shares for $48 NAV.What was your total return on this investment?

The process of buying a mutual fund involves determining your investment goals,identifying funds that meet your objectives,and evaluating those funds.

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.

Why is it important to determine what investment goals you are trying to achieve before you invest in a mutual fund?

When comparing which mutual fund to invest in,which of the following would be important to consider?

Explain what the three 'classes' of a mutual fund shares are all about.

Money market mutual funds have check writing privileges.

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

When you own shares in a mutual fund you make money in which of the following ways?

An open-end mutual fund has a fixed number of shares which are sold by the mutual fund at its inception.

Do the advantages of investing in a Mutual Fund outweigh the disadvantages for the average small investor?

Suppose that the current value of all of a mutual fund's holdings is determined to be $750 million.The fund's liabilities are $125 million and it grew at 20% from last year.It currently has 45 million shares outstanding.What is the fund's NAV?

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