Exam 13: Investing in Mutual Funds

Most mutual funds allow investors to participate in

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The NAV indicates the guaranteed price at which you could [buy | redeem] your mutual fund shares in a load fund.

Which of the following is not a website used to keep track of mutual fund performance

A technology fund is an example of a sector fund.

Open ended mutual funds companies buy their shares back from investors at NAV.

Money market funds are traded on the Money Market,just as closed-end stock funds are traded on the stock market.

Using the information below,at what price per share can you sell your mutual fund shares?

Balanced funds invest in a mix of utility and growth equities.

The fund whose main objective is to simply match the market known as a(n)____ fund.

When you buy shares in a load fund,you will pay the NAV.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -[Open-end | Closed-end] mutual funds always redeem shares at NAV.

A group of funds managed by a single company which offers conversion privileges is called a

A unit investment trust represents an interest in a managed pool of investments.

Bond mutual funds are always less risky than stock mutual funds.

Dividend income,capital gains distributions,and changes in the fund's share price are all sources of return for a mutual fund.

Generally speaking,socially responsible funds abstain from investing in alcohol,gambling,or tobacco stocks.

A fund's prospectus would provide information about a fund's fee structure.

Closed end mutual funds companies buy their shares back from investors at NAV.

The KLM Mutual Fund has a net asset value of $12.34 and an offer price of $13.34.Use this information to answer the following questions.(Show all work. ) a. How many shares will you receive when you invest $1,000? b. What is the immediate asset value of these shares? c. What is the load charge for this transaction?

The difference between the NAV and the offer price represents the commission charge for buying the mutual fund shares.