Exam 4: Mutual Funds and Other Investment Companies

One year ago, you purchased $8,000 worth of a mutual fund at an offering price of $41.40 a share. Today, the fund distributed $.20 per share in short-term gains and $1.04 per share in long-term gains. The current offering price is $46.60. The fund has a front-end load of 5% and total annual operating expenses of 1.25%. What is your rate of return on this investment?

Which one of the following statements is true?

Which of the following can you do with an ETF that you cannot do with an open-end fund? I. sell at mid-day prices II. short sell III. buy options on them IV. resell

Which type of stock fund focuses primarily on current income?

An ETF is best described as:

You invest $4,500 in a money market fund at the beginning of the year. The fund's assets appreciate by 4.4% over the year. How many shares of the fund do you own at the end of the year?

Contingent deferred sales charges:

You want to buy 1,200 shares of a mutual fund that has an NAV of $27.80. The fund charges a 3.75% front-end load. How much will you have to spend to make this purchase?

Which type of fund should you purchase if you are interested in investing primarily in countries that have relatively new stock markets?

The net asset value of a money market mutual fund:

Trading symbols for mutual funds end in which letter?

The primary difference between an international fund and a global fund is the fact that: