Exam 13: Personal Investing - Investing in Mutual Funds

If Rebecca's mutual fund has a sales charge schedule saying that if the fund is sold within the first year,the sales charge is 6 percent and if it is sold in the third year,the sales charge becomes 4.5 percent,Rebecca's mutual fund has a

You own 500 units of a fund that now has a NAV of $12.30.What is your total investment worth?

A mutual fund has a beginning balance of $100 million,earns interest of $10 million,receives dividends of $15 million,and has expenses of $5 million.If 10 million shares are outstanding,what is the NAVPS?

Closed-end mutual fund shares trade on stock exchanges and can sell at a premium or discount to their NAVPS.

Trailing commissions,management expenses and marketing expenses are all part of the MER of a mutual fund.

A family of mutual funds is

As long as a mutual fund is diversified with more than 60 different investments,further diversification is not recommended.

Most mutual funds are conservative investments.

What is the biggest advantage of an ETF over other funds?

A stock mutual fund that pays higher-than-normal dividends is called a growth fund.

You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund based on the TSX.The growth stocks fund had a five year average annual return of 11 percent with MER of 2.6 percent.The index fund had a five year average annual return of 11 percent with MER of 1.1 percent.Assuming equal risk,you should buy

For mutual funds,the net asset value (NAV)is reported

Which of the following characteristics is True of closed-end funds?

One advantage that segregated funds have over mutual funds is

Regarding load and no-load mutual funds,

Exchange-traded funds (ETFs)are similar to index mutual funds but have lower MERs and are traded like stocks,so have brokerage commission charges when buying and selling them.

Advantages of investing in mutual funds include all of the following except

The possibility that the Bank of Canada may raise the prime rate is an example of

The tracking error on an index mutual fund refers to how closely an index fund mirrors the movements of the index it represents.

Index funds offer tax advantages because