Question 1

The most popular UITs are those investing in real estate.

Accepted Answer

A) True 
 B)False

Question 2

A corporation and a limited partnership are similar in that each passes profits or losses to its owners for tax purposes.

Accepted Answer

A) True 
 B)False

Question 3

In a limited partnership,limited partners are inactive in managing the business.

Accepted Answer

A) True 
 B)False

Question 4

A REIT is an equity trust.

Accepted Answer

A) True 
 B)False

Question 5

The Flash Fund owns 4,000 of GM and 8,000 shares of Microsoft.GM's price is $20 and Microsoft's is $25.If the fund has 5,000 shares outstanding,its NAV per share is

Accepted Answer

A) $90.00. 
B) $93.33. 
C) $66.00. 
D) $56.00. 
A) $90.00. 
B) $93.33. 
C) $66.00. 
D) $56.00.

Question 6

A closed-end fund's appeal is enhanced if it

Accepted Answer

A) sells at a premium. 
B) has a load. 
C) does not have a load. 
D) sells at a discount. 
A) sells at a premium. 
B) has a load. 
C) does not have a load. 
D) sells at a discount.

Question 7

For a given return it is preferable to have

Accepted Answer

A) a high turnover rate and a high beta. 
B) a high turnover rate and a low beta. 
C) a low turnover rate and a low beta. 
D) a low turnover rate and a high beta. 
A) a high turnover rate and a high beta. 
B) a high turnover rate and a low beta. 
C) a low turnover rate and a low beta. 
D) a low turnover rate and a high beta.

Question 8

A real estate investment trust (REIT)invests

Accepted Answer

A) exclusively in property,such as buildings. 
B) exclusively in raw land. 
C) exclusively in both property and raw land. 
D) in many kinds of properties and mortgages to property. 
A) exclusively in property,such as buildings. 
B) exclusively in raw land. 
C) exclusively in both property and raw land. 
D) in many kinds of properties and mortgages to property.

Question 9

Consider the following assets: I.Treasury Strips,II.Coupon Treasury bonds,III.growth stocks,and IV.medium quality corporate bonds.An aggressive investor without high- priority future goals would prefer

Accepted Answer

A) I. 
B) II. 
C) III. 
D) IV. 
A) I. 
B) II. 
C) III. 
D) IV.

Question 10

An important characteristic of money market mutual funds is that

Accepted Answer

A) their deposits are insured by FSLIC. 
B) they differ from other mutual funds in return and their potential for default risk. 
C) they have a high degree of interest-rate risk. 
D) most are closed-end mutual funds. 
A) their deposits are insured by FSLIC. 
B) they differ from other mutual funds in return and their potential for default risk. 
C) they have a high degree of interest-rate risk. 
D) most are closed-end mutual funds.

Question 11

The Lei Fund had a risk-adjusted rate of return (RAROR)last year of -3.0%.This means

Accepted Answer

A) the fund underperformed the overall market. 
B) the fund outperformed the overall market. 
C) the overall market performed poorly. 
D) the fund had a negative beta. 
A) the fund underperformed the overall market. 
B) the fund outperformed the overall market. 
C) the overall market performed poorly. 
D) the fund had a negative beta.

Question 12

Load fund have generally not outperformed no-load funds.

Accepted Answer

A) True 
 B)False

Question 13

Aggressive investors without high-priority future goals are likely to prefer Treasury Strips.

Accepted Answer

A) True 
 B)False

Question 14

A fund that attempts to match the overall market's performance is

Accepted Answer

A) a sector fund. 
B) a maximum capital appreciation fund. 
C) an index fund. 
D) a matching fund. 
A) a sector fund. 
B) a maximum capital appreciation fund. 
C) an index fund. 
D) a matching fund.

Question 15

An open-end fund differs from a closed-end fund in that the open-end fund does not limit the kinds of securities it buys.

Accepted Answer

A) True 
 B)False

Question 16

The Mark Fund had a rate of return of 18% last year.If its beta weight was +1.5 and if the return on the overall market was 15%,its risk adjusted rate of return,RAROR,is

Accepted Answer

A) +19.5%. 
B) - 3.0%. 
C) +23.0%. 
D) + 2.0%. 
A) +19.5%. 
B) - 3.0%. 
C) +23.0%. 
D) + 2.0%.

Question 17

Because there are no income tax consequences arising from trading investments in a 401(k)plan,it is easy to be lured into market timing,which is generally unsuccessful.

Accepted Answer

A) True 
 B)False

Question 18

Since there are no tax consequences arising from trades in a 401(k)plan,it makes sense

Accepted Answer

A) to trade often in an attempt to time the markets. 
B) to ignore this feature and stick to a sound investment approach. 
C) not to participate in the plan since you can't write off tax losses. 
D) to trade aggressively if you are young and have a long investment horizon,but to be more conservative if you are nearing retirement. 
A) to trade often in an attempt to time the markets. 
B) to ignore this feature and stick to a sound investment approach. 
C) not to participate in the plan since you can't write off tax losses. 
D) to trade aggressively if you are young and have a long investment horizon,but to be more conservative if you are nearing retirement.

Question 19

A REIT's equity per share is similar to a fund's NAV.

Accepted Answer

A) True 
 B)False

Question 20

Many mutual funds operate without clearly-defined investment objectives.

Accepted Answer

A) True 
 B)False

The most popular UITs are those investing in real estate.

A corporation and a limited partnership are similar in that each passes profits or losses to its owners for tax purposes.

In a limited partnership,limited partners are inactive in managing the business.

A REIT is an equity trust.

The Flash Fund owns 4,000 of GM and 8,000 shares of Microsoft.GM's price is $20 and Microsoft's is $25.If the fund has 5,000 shares outstanding,its NAV per share is

A closed-end fund's appeal is enhanced if it

For a given return it is preferable to have

A real estate investment trust (REIT)invests

Consider the following assets: I.Treasury Strips,II.Coupon Treasury bonds,III.growth stocks,and IV.medium quality corporate bonds.An aggressive investor without high- priority future goals would prefer

An important characteristic of money market mutual funds is that

The Lei Fund had a risk-adjusted rate of return (RAROR)last year of -3.0%.This means

Load fund have generally not outperformed no-load funds.

Aggressive investors without high-priority future goals are likely to prefer Treasury Strips.

A fund that attempts to match the overall market's performance is

An open-end fund differs from a closed-end fund in that the open-end fund does not limit the kinds of securities it buys.

The Mark Fund had a rate of return of 18% last year.If its beta weight was +1.5 and if the return on the overall market was 15%,its risk adjusted rate of return,RAROR,is

Because there are no income tax consequences arising from trading investments in a 401(k)plan,it is easy to be lured into market timing,which is generally unsuccessful.

Since there are no tax consequences arising from trades in a 401(k)plan,it makes sense

A REIT's equity per share is similar to a fund's NAV.

Many mutual funds operate without clearly-defined investment objectives.

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters

Exam 12: Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

The most popular UITs are those investing in real estate.

A corporation and a limited partnership are similar in that each passes profits or losses to its owners for tax purposes.

In a limited partnership,limited partners are inactive in managing the business.

A REIT is an equity trust.

The Flash Fund owns 4,000 of GM and 8,000 shares of Microsoft.GM's price is $20 and Microsoft's is $25.If the fund has 5,000 shares outstanding,its NAV per share is

A closed-end fund's appeal is enhanced if it

For a given return it is preferable to have

A real estate investment trust (REIT)invests

Consider the following assets: I.Treasury Strips,II.Coupon Treasury bonds,III.growth stocks,and IV.medium quality corporate bonds.An aggressive investor without high- priority future goals would prefer

An important characteristic of money market mutual funds is that

The Lei Fund had a risk-adjusted rate of return (RAROR)last year of -3.0%.This means

Load fund have generally not outperformed no-load funds.

Aggressive investors without high-priority future goals are likely to prefer Treasury Strips.

A fund that attempts to match the overall market's performance is

An open-end fund differs from a closed-end fund in that the open-end fund does not limit the kinds of securities it buys.

The Mark Fund had a rate of return of 18% last year.If its beta weight was +1.5 and if the return on the overall market was 15%,its risk adjusted rate of return,RAROR,is

Because there are no income tax consequences arising from trading investments in a 401(k)plan,it is easy to be lured into market timing,which is generally unsuccessful.

Since there are no tax consequences arising from trades in a 401(k)plan,it makes sense

A REIT's equity per share is similar to a fund's NAV.

Many mutual funds operate without clearly-defined investment objectives.

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters