Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

Accepted Answer

A) True 
 B)False

Question 3

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.
-All funds will have [management | 12(b)-1] fees.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  balanced 
B)  preferred stock 
C)  money market 
D)  index 
E)  none of these 
A)  balanced 
B)  preferred stock 
C)  money market 
D)  index 
E)  none of these

Question 6

A mutual fund with a high 12(b)-1 fee will have a low expense ratio.

Accepted Answer

A) True 
 B)False

Question 7

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.
-You could drop an automatic investment plan [at any time | only by fulfilling the original agreement].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

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.
-Exchange traded funds are investment company shares that trade [at day's close | throughout the day] on stock exchanges.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

A mutual fund's NAV is its

Accepted Answer

A)  normal average value. 
B)  nationally advertized value. 
C)  noted assessment vision. 
D)  net asset value. 
E)  none of these 
A)  normal average value. 
B)  nationally advertized value. 
C)  noted assessment vision. 
D)  net asset value. 
E)  none of these

Question 10

The major advantage of mutual funds to the small investor is

Accepted Answer

A)  diversification. 
B)  professional management. 
C)  low cost. 
D)  convenience. 
E)  liquidity. 
A)  diversification. 
B)  professional management. 
C)  low cost. 
D)  convenience. 
E)  liquidity.

Question 11

Advantages of exchange traded funds over mutual funds include all of the following except

Accepted Answer

A)  lower overhead expenses 
B)  lower capital gains tax 
C)  lower expense ratio 
D)  better diversification 
E)  longer time horizon 
A)  lower overhead expenses 
B)  lower capital gains tax 
C)  lower expense ratio 
D)  better diversification 
E)  longer time horizon

Question 12

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 primary reason for investing in mutual funds is [professional management | diversification].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

Open ended mutual funds can be traded on an intraday basis.

Accepted Answer

A) True 
 B)False

Question 14

Closed-ended mutual funds are guaranteed,they cannot lose value.

Accepted Answer

A) True 
 B)False

Question 15

To be a true no-load fund,there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.

Accepted Answer

A)  0%; 0.00% 
B)  0%; 0.25% 
C)  0%; 1.00% 
D)  3%; 0.25% 
E)  3%; 1.00% 
A)  0%; 0.00% 
B)  0%; 0.25% 
C)  0%; 1.00% 
D)  3%; 0.25% 
E)  3%; 1.00%

Question 16

The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

Accepted Answer

A)  $10.40 
B)  $10.00 
C)  $9.60 
D)  $9.40 
E)  $9.20 
A)  $10.40 
B)  $10.00 
C)  $9.60 
D)  $9.40 
E)  $9.20

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The maximum sales charge a no load mutual fund can charge

Accepted Answer

A)  7% of the net asset value. 
B)  7% of the purchase price. 
C)  8 1/2% of the net asset value. 
D)  8 1/2% of the purchase price. 
E)  none of these. 
A)  7% of the net asset value. 
B)  7% of the purchase price. 
C)  8 1/2% of the net asset value. 
D)  8 1/2% of the purchase price. 
E)  none of these.

Question 19

Growth-and-Income funds invest most of their capital in common stocks.

Accepted Answer

A) True 
 B)False

Question 20

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.(Show all work.)

Accepted Answer

@#IMG-DLM& 
Net asse

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

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

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. -All funds will have [management | 12(b)-1] fees.

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

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

A mutual fund with a high 12(b)-1 fee will have a low expense ratio.

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. -You could drop an automatic investment plan [at any time | only by fulfilling the original agreement].

A mutual fund's NAV is its

The major advantage of mutual funds to the small investor is

Advantages of exchange traded funds over mutual funds include all of the following except

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 primary reason for investing in mutual funds is [professional management | diversification].

Open ended mutual funds can be traded on an intraday basis.

Closed-ended mutual funds are guaranteed,they cannot lose value.

To be a true no-load fund,there can be a maximum load and a maximum 12(b)-1 fee.

The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

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

The maximum sales charge a no load mutual fund can charge

Growth-and-Income funds invest most of their capital in common stocks.

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.(Show all work.)

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters

Exam 13: Investing in Mutual Funds

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

A mutual fund prospectus is required to fully disclose all fund fees and expenses.

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. -All funds will have [management | 12(b)-1] fees.

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

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

A mutual fund with a high 12(b)-1 fee will have a low expense ratio.

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. -You could drop an automatic investment plan [at any time | only by fulfilling the original agreement].

A mutual fund's NAV is its

The major advantage of mutual funds to the small investor is

Advantages of exchange traded funds over mutual funds include all of the following except

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 primary reason for investing in mutual funds is [professional management | diversification].

Open ended mutual funds can be traded on an intraday basis.

Closed-ended mutual funds are guaranteed,they cannot lose value.

To be a true no-load fund,there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.

The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

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

The maximum sales charge a no load mutual fund can charge

Growth-and-Income funds invest most of their capital in common stocks.

Creviston Mutual Fund,a load fund,holds securities valued at $90,000,000 on August 30.The fund had liabilities of $2,000,000 and 4,800,000 shares outstanding.Calculate the net asset value per share on this day.(Show all work.)

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters

To be a true no-load fund,there can be a maximum load and a maximum 12(b)-1 fee.