Question 1

Why are stock mutual funds so popular? Briefly outline the highlights of each type of fund.

Accepted Answer

There is a stock mutual fund for almost

Question 2

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 3

Principle 8 tells us that diversification reduces

Accepted Answer

A) risk. 
B) costs. 
C) profitability. 
D) earnings. 
E) none of the above. 
A) risk. 
B) costs. 
C) profitability. 
D) earnings. 
E) none of the above.

Question 4

A mutual fund that does not charge a commission to own its shares is called a

Accepted Answer

A) free issue fund. 
B) market fund. 
C) no-load fund. 
D) no-charge fund. 
E) free-load fund. 
A) free issue fund. 
B) market fund. 
C) no-load fund. 
D) no-charge fund. 
E) free-load fund.

Question 5

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 6

A sector fund is a mutual fund that tries to maximize the degree of diversification.

Accepted Answer

A) True 
 B)False

Question 7

Total returns on mutual funds can be calculated by adding dividends distributed,capital gains distributed,and ________ and dividing this sum by the beginning NAV.

Accepted Answer

A) beginning NAV - ending NAV 
B) ending NAV - beginning NAV 
C) dividends undistributed + capital gains undistributed 
D) beginning NAV + ending NAV 
E) ending NAV + beginning NAV 
A) beginning NAV - ending NAV 
B) ending NAV - beginning NAV 
C) dividends undistributed + capital gains undistributed 
D) beginning NAV + ending NAV 
E) ending NAV + beginning NAV

Question 8

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

Accepted Answer

Open-end funds can literally issue as ma

Question 9

A mutual fund that does not charge a commission on your ownership shares is referred to as a load fund.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

Why are Exchange Traded Funds (ETF's)considered a hybrid between mutual funds and stocks?

Accepted Answer

ETF's diversify away risk across differe

Question 13

What is the total return for a mutual fund with the following characteristics?
Beginning NAV = $55.82
Ending NAV = $70.52
Dividends distributed = $2.25
Capital gains distributed = $3.50

Accepted Answer

A) 29.71% 
B) 30.82% 
C) 32.26% 
D) 36.64% 
A) 29.71% 
B) 30.82% 
C) 32.26% 
D) 36.64%

Question 14

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 15

An index fund is a great choice for those who want to "beat the market."

Accepted Answer

A) True 
 B)False

Question 16

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 17

To obtain information about mutual funds you must always pay a fee.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Mutual fund shareholders directly own the fund's securities.

Accepted Answer

A) True 
 B)False

Question 20

For an investor with little time or desire to follow the markets,a life cycle fund would be an appropriate choice for their retirement savings.

Accepted Answer

A) True 
 B)False

Why are stock mutual funds so popular? Briefly outline the highlights of each type of fund.

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

Principle 8 tells us that diversification reduces

A mutual fund that does not charge a commission to own its shares is called a

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

A sector fund is a mutual fund that tries to maximize the degree of diversification.

Total returns on mutual funds can be calculated by adding dividends distributed,capital gains distributed,and ________ and dividing this sum by the beginning NAV.

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

A mutual fund that does not charge a commission on your ownership shares is referred to as a load fund.

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

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

Why are Exchange Traded Funds (ETF's)considered a hybrid between mutual funds and stocks?

What is the total return for a mutual fund with the following characteristics? Beginning NAV = $55.82 Ending NAV = $70.52 Dividends distributed = $2.25 Capital gains distributed = $3.50

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

An index fund is a great choice for those who want to "beat the market."

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

To obtain information about mutual funds you must always pay a fee.

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

Mutual fund shareholders directly own the fund's securities.

For an investor with little time or desire to follow the markets,a life cycle fund would be an appropriate choice for their retirement savings.

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 are stock mutual funds so popular? Briefly outline the highlights of each type of fund.

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

Principle 8 tells us that diversification reduces

A mutual fund that does not charge a commission to own its shares is called a

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

A sector fund is a mutual fund that tries to maximize the degree of diversification.

Total returns on mutual funds can be calculated by adding dividends distributed,capital gains distributed,and ________ and dividing this sum by the beginning NAV.

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

A mutual fund that does not charge a commission on your ownership shares is referred to as a load fund.

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

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

Why are Exchange Traded Funds (ETF's)considered a hybrid between mutual funds and stocks?

What is the total return for a mutual fund with the following characteristics? Beginning NAV = $55.82 Ending NAV = $70.52 Dividends distributed = $2.25 Capital gains distributed = $3.50

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

An index fund is a great choice for those who want to "beat the market."

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

To obtain information about mutual funds you must always pay a fee.

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

Mutual fund shareholders directly own the fund's securities.

For an investor with little time or desire to follow the markets,a life cycle fund would be an appropriate choice for their retirement savings.

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