Exam 16: Investing in Mutual Funds

Henrietta Marston plans to retire in the year 2050.She is considering a fund that will be more risk-oriented now and become increasingly conservative as she approaches retirement.Which of the following funds would you recommend to her?

Today,there are more investment companies that offer closed-end funds than there are that offer open-end funds.

Tisha Elmwood is buying shares in a mutual fund that avoids companies that do harm to people,animals,and the environment.What type of mutual fund is this?

The average management fee for mutual funds ranges between ________ percent of the fund's assets.

While advisory services provide detailed information on common and preferred stocks,there are no advisory services that provide information on mutual funds.

All of the following information is contained in a mutual fund's fee table,except:

Another name for a mutual fund that charges a contingent deferred sales load is a(n)________ fund.

Exchange-traded funds are offered by about ________ investment companies.

Sharon Taylor uses all of her dividend income and capital gain distributions to purchase additional shares in her mutual fund.Which one of the following plans is she using?

Which of the following companies manages assets of $5.1 trillion,has almost 400 different funds,and has historically been known as the leader of low-cost investing?

Because of professional management,there is no need for the individual investor to evaluate a mutual fund investment.

The average management fee for all mutual funds is ________ of the fund's assets:

A mutual fund in which shares are issued only when the fund is organized is called a ________ fund.

A mutual fund that invests in companies within the same industry is called a(n)________ fund.

Will Hopkins is getting ready to purchase shares in a mutual fund.He will have to pay a one-time sales charge to purchase these shares.What type of shares is he buying?

Mary Cooper just purchased 100 shares in the All-American Fund.The purchase cost for each share was $10.If this fund charges a 3 percent load,what is the total amount of commission she will pay the investment company?

The All-Star Basic Value Fund's portfolio is valued at $105 million.The fund has liabilities of $2.5 million,and the fund's net asset value is $6.25.What is the fund's number of shares outstanding?

Bob Newsome purchased 250 shares of the Northern Lights Growth Fund.The purchase cost was $20 per share and the total commission was $250.What is the load being charged by the fund?

Last month Nellie Jacobson's divorce became final.As part of the settlement,she received $150,000.She would like to invest in mutual funds,but since she is 62 years old,she is concerned with the safety of her "nest egg." Which of the following mutual funds would you recommend?

A(n)________ fund is a fund that generally invests in the stocks or other securities contained in a specific stock or securities index.