Question 1

A mutual fund with a 4.5 percent front-end load has a NAV of $74.53. What is the offering price of the fund?

Accepted Answer

A)  $78.04 
B)  $78.39 
C)  $78.97 
D)  $71.18 
E)  $79.27 
A)  $78.04 
B)  $78.39 
C)  $78.97 
D)  $71.18 
E)  $79.27

Question 2

A mutual fund has 4,000 shares of Stock A at a price of $45 and 6,000 shares of Stock B at a price of $35. If the fund has 20,000 shares outstanding, what is the NAV of the fund? Assume there are no liabilities for this fund.

Accepted Answer

A)  $18.75 
B)  $19.50 
C)  $17.10 
D)  $21.10 
E)  $20.65 
A)  $18.75 
B)  $19.50 
C)  $17.10 
D)  $21.10 
E)  $20.65

Question 3

___________ is an index fund holding a diversified portfolio of securities, priced and traded on public exchanges.

Accepted Answer

A)  NAV 
B)  RRSP 
C)  ETF 
D)  GDP 
E)  EVA 
A)  NAV 
B)  RRSP 
C)  ETF 
D)  GDP 
E)  EVA

Question 4

Which of the following fund types often trades at a discount or premium to its NAV?

Accepted Answer

A)  Index funds. 
B)  Money market funds. 
C)  Open-end funds. 
D)  Closed-end funds. 
E)  Hedge funds. 
A)  Index funds. 
B)  Money market funds. 
C)  Open-end funds. 
D)  Closed-end funds. 
E)  Hedge funds.

Question 5

Which of the following fees and expenses is not directly reported to shareholders?

Accepted Answer

A)  Trading costs. 
B)  Management fees. 
C)  Special fees. 
D)  Deferred sales charge. 
E)  Switch fees. 
A)  Trading costs. 
B)  Management fees. 
C)  Special fees. 
D)  Deferred sales charge. 
E)  Switch fees.

Question 6

Investment in no-load mutual fund shares

Accepted Answer

A)  needs a brokerage service 
B)  requires a commission payment 
C)  is identical to investments with load charges 
D)  can be made directly through the investment company 
E)  None of the above 
A)  needs a brokerage service 
B)  requires a commission payment 
C)  is identical to investments with load charges 
D)  can be made directly through the investment company 
E)  None of the above

Question 7

Which of the following mutual funds is likely to have the highest dividend yield?

Accepted Answer

A)  Equity income fund. 
B)  Capital appreciation fund. 
C)  Growth and income fund. 
D)  Small company stock fund. 
E)  Growth fund. 
A)  Equity income fund. 
B)  Capital appreciation fund. 
C)  Growth and income fund. 
D)  Small company stock fund. 
E)  Growth fund.

Question 8

A company that pools funds of individual investors and invests them on a group basis is called a(n) ___________ company.

Accepted Answer

A)  Trust 
B)  Investment 
C)  Brokerage 
D)  Mutual 
E)  Financial 
A)  Trust 
B)  Investment 
C)  Brokerage 
D)  Mutual 
E)  Financial

Question 9

Which of the following fund types is not registered with the securities exchange commissions?

Accepted Answer

A)  Exchange traded funds. 
B)  Money market funds. 
C)  Open-end funds. 
D)  Closed-end funds. 
E)  Hedge funds. 
A)  Exchange traded funds. 
B)  Money market funds. 
C)  Open-end funds. 
D)  Closed-end funds. 
E)  Hedge funds.

Question 10

A closed-end fund has total assets of $270 million and liabilities of $640,000. There are 25 million shares outstanding. What is the premium or discount on the fund if the shares are currently selling for $9.80 each?

Accepted Answer

A)  6.48% discount 
B)  7.64% discount 
C)  9.01% discount 
D)  6.34% premium 
E)  8.04% premium 
A)  6.48% discount 
B)  7.64% discount 
C)  9.01% discount 
D)  6.34% premium 
E)  8.04% premium

Question 11

A mutual fund has 2,000 shares of stock at a price of $70 and 6,000 shares of another stock at a price of $30. If the fund has an NAV of $17.10, how many shares of the mutual fund are outstanding?

Accepted Answer

A)  8,000 
B)  16,242 
C)  18,713 
D)  17,626 
E)  19,853 
A)  8,000 
B)  16,242 
C)  18,713 
D)  17,626 
E)  19,853

Question 12

A mutual fund had assets of $210 million at the beginning of the year and $240 million at the end of the year. If the fund has a management fee of 0.75 percent, how much did the fund's management receive in fees during the year?

Accepted Answer

A)  $1,704,000 
B)  $1,575,000 
C)  $1,430,000 
D)  $1,800,000 
E)  $1,650,000 
A)  $1,704,000 
B)  $1,575,000 
C)  $1,430,000 
D)  $1,800,000 
E)  $1,650,000

Question 13

A mutual fund has sales during the year of $86 million and purchases of $94 million. If the average daily assets of the fund were $110 million, what was the fund turnover?

Accepted Answer

A)  0.82 
B)  0.71 
C)  0.78 
D)  0.74 
E)  0.85 
A)  0.82 
B)  0.71 
C)  0.78 
D)  0.74 
E)  0.85

Question 14

A(n) ___________ is a non-corporate form of business organization holding debt and equity of an underlying business and distributing all income generated back to unit-holders.

Accepted Answer

A)  Co-op trust 
B)  Income trust 
C)  Labor-sponsored fund 
D)  Tax-free income fund 
E)  Guaranteed trust 
A)  Co-op trust 
B)  Income trust 
C)  Labor-sponsored fund 
D)  Tax-free income fund 
E)  Guaranteed trust

Question 15

A mutual fund has 40,000 shares of Stock A at a price of $38 and 60,000 shares of Stock B at a price of $46. If the fund has 95,000 shares outstanding and total liabilities of $130,000, what is the NAV of the fund?

Accepted Answer

A)  $42.74 
B)  $43.68 
C)  $44.31 
D)  $45.05 
E)  $46.13 
A)  $42.74 
B)  $43.68 
C)  $44.31 
D)  $45.05 
E)  $46.13

Question 16

Suppose you are planning to invest in a mutual fund for the next thirty-five years. The expense you should be most concerned with is the:

Accepted Answer

A)  management fee. 
B)  front-end load. 
C)  deferred sales charge. 
D)  exchange fee. 
E)  back-end load. 
A)  management fee. 
B)  front-end load. 
C)  deferred sales charge. 
D)  exchange fee. 
E)  back-end load.

Question 17

The ABC Fund is a closed-end fund founded in 1998 at which time it was fully subscribed. You want to invest $5,000 in this fund today. You need to have purchased your shares

Accepted Answer

A)  In a private transaction 
B)  Under the agreement made in 1998 
C)  Directly from the fund 
D)  From a relative 
E)  From another shareholder 
A)  In a private transaction 
B)  Under the agreement made in 1998 
C)  Directly from the fund 
D)  From a relative 
E)  From another shareholder

Question 18

A deferred sales charge is also know as a(n):

Accepted Answer

A)  offering price. 
B)  special fee. 
C)  back-end load. 
D)  front-end load. 
E)  exchange fee. 
A)  offering price. 
B)  special fee. 
C)  back-end load. 
D)  front-end load. 
E)  exchange fee.

Question 19

You have purchased shares of the AGF Stock Fund for just a week. However, you decide you want to invest in a bond fund so you move your investment to the AGF Bond Fund. If the company charges you a fee of $30, this charge is considered as a(n):

Accepted Answer

A)  management fee. 
B)  soft dollar expense. 
C)  front-end load. 
D)  deferred sales charge. 
E)  short-term trading fee. 
A)  management fee. 
B)  soft dollar expense. 
C)  front-end load. 
D)  deferred sales charge. 
E)  short-term trading fee.

Question 20

The net asset value of a money market mutual fund

Accepted Answer

A)  Generally fluctuates on a daily basis 
B)  Is guaranteed to be $10 
C)  Can be equal to or greater than $10, but not less than $10 
D)  Can fall below $10 
E)  Is protected by the CDIC 
A)  Generally fluctuates on a daily basis 
B)  Is guaranteed to be $10 
C)  Can be equal to or greater than $10, but not less than $10 
D)  Can fall below $10 
E)  Is protected by the CDIC

A mutual fund with a 4.5 percent front-end load has a NAV of $74.53. What is the offering price of the fund?

A mutual fund has 4,000 shares of Stock A at a price of $45 and 6,000 shares of Stock B at a price of $35. If the fund has 20,000 shares outstanding, what is the NAV of the fund? Assume there are no liabilities for this fund.

___________ is an index fund holding a diversified portfolio of securities, priced and traded on public exchanges.

Which of the following fund types often trades at a discount or premium to its NAV?

Which of the following fees and expenses is not directly reported to shareholders?

Investment in no-load mutual fund shares

Which of the following mutual funds is likely to have the highest dividend yield?

A company that pools funds of individual investors and invests them on a group basis is called a(n) ___________ company.

Which of the following fund types is not registered with the securities exchange commissions?

A closed-end fund has total assets of $270 million and liabilities of $640,000. There are 25 million shares outstanding. What is the premium or discount on the fund if the shares are currently selling for $9.80 each?

A mutual fund has 2,000 shares of stock at a price of $70 and 6,000 shares of another stock at a price of $30. If the fund has an NAV of $17.10, how many shares of the mutual fund are outstanding?

A mutual fund had assets of $210 million at the beginning of the year and $240 million at the end of the year. If the fund has a management fee of 0.75 percent, how much did the fund's management receive in fees during the year?

A mutual fund has sales during the year of $86 million and purchases of $94 million. If the average daily assets of the fund were $110 million, what was the fund turnover?

A(n) ___________ is a non-corporate form of business organization holding debt and equity of an underlying business and distributing all income generated back to unit-holders.

A mutual fund has 40,000 shares of Stock A at a price of $38 and 60,000 shares of Stock B at a price of $46. If the fund has 95,000 shares outstanding and total liabilities of $130,000, what is the NAV of the fund?

Suppose you are planning to invest in a mutual fund for the next thirty-five years. The expense you should be most concerned with is the:

The ABC Fund is a closed-end fund founded in 1998 at which time it was fully subscribed. You want to invest $5,000 in this fund today. You need to have purchased your shares

A deferred sales charge is also know as a(n):

You have purchased shares of the AGF Stock Fund for just a week. However, you decide you want to invest in a bond fund so you move your investment to the AGF Bond Fund. If the company charges you a fee of $30, this charge is considered as a(n):

The net asset value of a money market mutual fund

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Overview of Security Types

The Stock Market

Common Stock Valuation

Stock Price Behaviour and Market Efficiency

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

Options

Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

Corporate Bonds

Government Bonds and Mortgaged-Backed Securities

International Portfolio Investment

Filters

Exam 5: Mutual Funds

A mutual fund with a 4.5 percent front-end load has a NAV of $74.53. What is the offering price of the fund?

A mutual fund has 4,000 shares of Stock A at a price of $45 and 6,000 shares of Stock B at a price of $35. If the fund has 20,000 shares outstanding, what is the NAV of the fund? Assume there are no liabilities for this fund.

___________ is an index fund holding a diversified portfolio of securities, priced and traded on public exchanges.

Which of the following fund types often trades at a discount or premium to its NAV?

Which of the following fees and expenses is not directly reported to shareholders?

Investment in no-load mutual fund shares

Which of the following mutual funds is likely to have the highest dividend yield?

A company that pools funds of individual investors and invests them on a group basis is called a(n) ___________ company.

Which of the following fund types is not registered with the securities exchange commissions?

A closed-end fund has total assets of $270 million and liabilities of $640,000. There are 25 million shares outstanding. What is the premium or discount on the fund if the shares are currently selling for $9.80 each?

A mutual fund has 2,000 shares of stock at a price of $70 and 6,000 shares of another stock at a price of $30. If the fund has an NAV of $17.10, how many shares of the mutual fund are outstanding?

A mutual fund had assets of $210 million at the beginning of the year and $240 million at the end of the year. If the fund has a management fee of 0.75 percent, how much did the fund's management receive in fees during the year?

A mutual fund has sales during the year of $86 million and purchases of $94 million. If the average daily assets of the fund were $110 million, what was the fund turnover?

A(n) ___________ is a non-corporate form of business organization holding debt and equity of an underlying business and distributing all income generated back to unit-holders.

A mutual fund has 40,000 shares of Stock A at a price of $38 and 60,000 shares of Stock B at a price of $46. If the fund has 95,000 shares outstanding and total liabilities of $130,000, what is the NAV of the fund?

Suppose you are planning to invest in a mutual fund for the next thirty-five years. The expense you should be most concerned with is the:

The ABC Fund is a closed-end fund founded in 1998 at which time it was fully subscribed. You want to invest $5,000 in this fund today. You need to have purchased your shares

A deferred sales charge is also know as a(n):

You have purchased shares of the AGF Stock Fund for just a week. However, you decide you want to invest in a bond fund so you move your investment to the AGF Bond Fund. If the company charges you a fee of $30, this charge is considered as a(n):

The net asset value of a money market mutual fund

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Overview of Security Types

The Stock Market

Common Stock Valuation

Stock Price Behaviour and Market Efficiency

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

Options

Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

Corporate Bonds

Government Bonds and Mortgaged-Backed Securities

International Portfolio Investment

Filters