Question 1

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 2

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 3

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 4

Former hedge fund manager Bernie Madoff ran a Ponzi scheme,in which he took money from new investors and used that money to pay earlier investors,all the while pocketing most of the money for himself.In the end,Madoff lost around ________ of his investors' money and ended up behind bars."

Accepted Answer

A) $100 million 
B) $5 billion 
C) $25 billion 
D) $50 billion 
A) $100 million 
B) $5 billion 
C) $25 billion 
D) $50 billion

Question 5

Briefly describe the cost involved in mutual funds.

Accepted Answer

A mutual fund has either a sales commiss

Question 6

Bonnie and James are retired.They wish to continue to invest in their portfolio and are seeking income instead of growth.Which should they invest in?

Accepted Answer

A) Growth funds 
B) Bond funds 
C) Sector funds 
D) All of the above are correct. 
E) Only A and C are correct. 
A) Growth funds 
B) Bond funds 
C) Sector funds 
D) All of the above are correct. 
E) Only A and C are correct.

Question 7

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 8

"Classes" of mutual funds have different fee arrangements attached to them.

Accepted Answer

A) True 
 B)False

Question 9

Marketing expenses on mutual funds are covered by a

Accepted Answer

A) NAV. 
B) no-load fund. 
C) 12b-1 fee. 
D) expense ratio. 
A) NAV. 
B) no-load fund. 
C) 12b-1 fee. 
D) expense ratio.

Question 10

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 11

Mutual funds eliminate the systematic risk through diversification.

Accepted Answer

A) True 
 B)False

Question 12

According to the Keown book,mutual funds are a great way to invest.Once you have the minimum amount saved-about $3,000 for most Vanguard mutual funds-it's time to start investing.What are a few factors to keep in mind?

Accepted Answer

Goals.Set up your investment plan to mee

Question 13

Net asset value is determined by taking the total market value of all the securities held by the mutual fund,subtracting out any liabilities,and dividing the result by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

There may be a tax liability due on the

Question 15

For your investment program,you have occasionally been holding a few stocks that you purchased from various brokers.Based on this,which advantages of mutual funds would be appealing to you?

Accepted Answer

A) Diversification 
B) Professional management 
C) Avoidance of bad brokers 
D) only A and C 
E) A,B,and C 
A) Diversification 
B) Professional management 
C) Avoidance of bad brokers 
D) only A and C 
E) A,B,and C

Question 16

Money market mutual funds have check writing privileges.

Accepted Answer

A) True 
 B)False

Question 17

Mutual funds provide an inexpensive way for investors to diversify and gain access to professional management.

Accepted Answer

A) True 
 B)False

Question 18

You purchased 100 shares of Gibraltar Strength Fund for $12.75 per share.Its current NAV is 18.75 per share.There was a total of $0.25 in dividends and $0.75 in capital gains distributed.What is your total return?

Accepted Answer

A) 32.00% 
B) 37.33% 
C) 47.06% 
D) 54.90% 
A) 32.00% 
B) 37.33% 
C) 47.06% 
D) 54.90%

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

What sources of information does Art Keown,your textbook author,recommend when researching mutual fund investing?

Accepted Answer

A) Yahoo! Finance 
B) The Wall Street Journal 
C) MoneyCentral 
D) Morningstar Mutual Funds 
E) All of the above 
A) Yahoo! Finance 
B) The Wall Street Journal 
C) MoneyCentral 
D) Morningstar Mutual Funds 
E) All of the above

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

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

The investor services that most mutual funds offer include

Former hedge fund manager Bernie Madoff ran a Ponzi scheme,in which he took money from new investors and used that money to pay earlier investors,all the while pocketing most of the money for himself.In the end,Madoff lost around ________ of his investors' money and ended up behind bars."

Briefly describe the cost involved in mutual funds.

Bonnie and James are retired.They wish to continue to invest in their portfolio and are seeking income instead of growth.Which should they invest in?

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

"Classes" of mutual funds have different fee arrangements attached to them.

Marketing expenses on mutual funds are covered by a

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.

Mutual funds eliminate the systematic risk through diversification.

According to the Keown book,mutual funds are a great way to invest.Once you have the minimum amount saved-about $3,000 for most Vanguard mutual funds-it's time to start investing.What are a few factors to keep in mind?

Net asset value is determined by taking the total market value of all the securities held by the mutual fund,subtracting out any liabilities,and dividing the result by the number of shares outstanding.

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

For your investment program,you have occasionally been holding a few stocks that you purchased from various brokers.Based on this,which advantages of mutual funds would be appealing to you?

Money market mutual funds have check writing privileges.

Mutual funds provide an inexpensive way for investors to diversify and gain access to professional management.

You purchased 100 shares of Gibraltar Strength Fund for $12.75 per share.Its current NAV is 18.75 per share.There was a total of $0.25 in dividends and $0.75 in capital gains distributed.What is your total return?

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

What sources of information does Art Keown,your textbook author,recommend when researching mutual fund investing?

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 Eventsfitting the Pieces Together

Filters

Exam 14: Mutual Funds: an Easy Way to Diversify

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

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

The investor services that most mutual funds offer include

Former hedge fund manager Bernie Madoff ran a Ponzi scheme,in which he took money from new investors and used that money to pay earlier investors,all the while pocketing most of the money for himself.In the end,Madoff lost around ________ of his investors' money and ended up behind bars."

Briefly describe the cost involved in mutual funds.

Bonnie and James are retired.They wish to continue to invest in their portfolio and are seeking income instead of growth.Which should they invest in?

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

"Classes" of mutual funds have different fee arrangements attached to them.

Marketing expenses on mutual funds are covered by a

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.

Mutual funds eliminate the systematic risk through diversification.

According to the Keown book,mutual funds are a great way to invest.Once you have the minimum amount saved-about $3,000 for most Vanguard mutual funds-it's time to start investing.What are a few factors to keep in mind?

Net asset value is determined by taking the total market value of all the securities held by the mutual fund,subtracting out any liabilities,and dividing the result by the number of shares outstanding.

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

For your investment program,you have occasionally been holding a few stocks that you purchased from various brokers.Based on this,which advantages of mutual funds would be appealing to you?

Money market mutual funds have check writing privileges.

Mutual funds provide an inexpensive way for investors to diversify and gain access to professional management.

You purchased 100 shares of Gibraltar Strength Fund for $12.75 per share.Its current NAV is 18.75 per share.There was a total of $0.25 in dividends and $0.75 in capital gains distributed.What is your total return?

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

What sources of information does Art Keown,your textbook author,recommend when researching mutual fund investing?

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 Eventsfitting the Pieces Together

Filters