Exam 17: Investing in Mutual Funds

Which of the following bond mutual funds has both the lowest default risk and the lowest interest rate risk?

The net asset value (NAV) per share of a mutual fund is determined by the market value of securities owned minus liabilities divided by the number of mutual fund shares outstanding.

The susceptibility of a mutual fund's performance to general stock market conditions is known as

The best way to predict a mutual fund's performance is to

In considering various stock mutual fund characteristics, which of the following should you not consider?

The price per share for a closed-end mutual fund can differ from the fund's NAV per share.

Which of the following stock funds would probably have the lowest risk and return?

The best investment strategy is to

Of the management, advertising, and administrative fees charged by mutual funds, normally the management fee is the smallest.

The amount by which a closed-end fund's share price in the secondary market is below the fund's NAV is called the

Existing shares of closed-end mutual fund companies are purchased

An international stock mutual fund is one that owns shares in companies from the United States and other countries.

The net asset value (NAV) is reported in financial newspapers and on financial Web sites

International bond funds

Before investing in a mutual fund, the very least you should do is

Municipal bond mutual funds are primarily for investors seeking

When you begin to save for retirement and general wealth building, it is wise to invest in mutual funds because

Use the following two columns of items to answer the matching questions below: -bond mutual funds A)funds that sell shares to individuals and invest the proceeds in bonds B)mutual funds that focus on firms that pay a high level of dividends C)mutual funds that focus on a specific industry D)mutual funds that contain both growth stocks and stocks that pay dividends E)mutual funds that focus on stocks that are expected to grow at a very high rate

Choosing a mutual fund or an investment company involves reviewing past performance and also comparing fees and expenses charged.

Arrange the following five bond funds in order from the lowest return and risk to the highest: long-term global, short-term Treasury, intermediate-term corporate, long-term high-yield, long-term Ginnie Mae.