Question 1

If the stock owned by a mutual fund increases in value,the net asset value of the fund will fall.

Accepted Answer

A) True 
 B)False

Question 2

International funds are the only funds that can invest in foreign securities.

Accepted Answer

A) True 
 B)False

Question 3

The NAV of a mutual fund with a market value of its assets of $100 million and 10 million shares outstanding would be $10.

Accepted Answer

A) True 
 B)False

Question 4

The Amalgamated Fund has assets with a market value of $25 million dollars,liabilities of $1 million dollars and 10 million shares outstanding.Its net asset value is

Accepted Answer

A) $2.40. 
B) $24.00. 
C) $25.00. 
D) $26.00. 
A) $2.40. 
B) $24.00. 
C) $25.00. 
D) $26.00.

Question 5

Switching between mutual funds in the same family of funds  can typically be done for no fee.

Accepted Answer

A) True 
 B)False

Question 6

The average expense ratio for diversified stock mutual funds is around ____ percent.

Accepted Answer

A) 5.00 
B) 0.25 
C) 1.45 
D) 0.40 
A) 5.00 
B) 0.25 
C) 1.45 
D) 0.40

Question 7

A closed-end investment company issues a limited and fixed number of shares and does not buy them back.

Accepted Answer

A) True 
 B)False

Question 8

Mutual funds that charge a load do so to compensate

Accepted Answer

A) fund managers. 
B) Brokers and salespeople. 
C) the SEC. 
D) shareholders. 
A) fund managers. 
B) Brokers and salespeople. 
C) the SEC. 
D) shareholders.

Question 9

Compute the net asset value for a share of a mutual fund with the following characteristics:
​
Market value of assets:
$6,257,562,000
Market value of liabilities:
$123,800,000
Number of shares outstanding:
134,430,000

Accepted Answer

A) $46.55 
B) $47.47 
C) $50.55 
D) $45.63 
A) $46.55 
B) $47.47 
C) $50.55 
D) $45.63

Question 10

A mutual fund that does not assess a sales charge at the time of the investment purchase is called a ____ fund.

Accepted Answer

A) low-load 
B) no-load 
C) back-end load 
D) front-end load 
A) low-load 
B) no-load 
C) back-end load 
D) front-end load

Question 11

Mutual funds that invest in lesser-known companies with a market capitalization of $2-$10 billion that are expected to grow rapidly are called ____ funds.

Accepted Answer

A) large-cap 
B) small-cap 
C) microcap 
D) mid-cap 
A) large-cap 
B) small-cap 
C) microcap 
D) mid-cap

Question 12

When you buy shares in a mutual fund you are trusting that the fund's investment advisers share your investment objectives.

Accepted Answer

A) True 
 B)False

Question 13

Low-load mutual funds usually have sales charges of ____ percent.

Accepted Answer

A) 1 to 3 
B) 3 to 5 
C) 5 to 7 
D) 7 to 9 
A) 1 to 3 
B) 3 to 5 
C) 5 to 7 
D) 7 to 9

Question 14

Advantages of mutual funds include

Accepted Answer

A) diversification. 
B) professional management. 
C) liquidity. 
D) (All of these) 
A) diversification. 
B) professional management. 
C) liquidity. 
D) (All of these)

Question 15

The Securities and Exchange Commission requires specific disclosure of all types of charges on mutual funds.

Accepted Answer

A) True 
 B)False

Question 16

Common measures of risk for mutual funds include

Accepted Answer

A) beta. 
B) the fund's Sharpe ratio. 
C) standard deviation. 
D) (All of these) 
A) beta. 
B) the fund's Sharpe ratio. 
C) standard deviation. 
D) (All of these)

Question 17

The measure of a fund's expenses expressed per dollar of the assets under management is its

Accepted Answer

A) beta. 
B) expense load. 
C) expense ratio. 
D) front-end load. 
A) beta. 
B) expense load. 
C) expense ratio. 
D) front-end load.

Question 18

____ are received as current income while one owns shares in a mutual fund.

Accepted Answer

A) Ordinary income dividend distributions and capital gains distributions 
B) Ordinary income dividend distributions and capital growth 
C) Capital gains distributions and capital growth 
D) Dividend distributions only 
A) Ordinary income dividend distributions and capital gains distributions 
B) Ordinary income dividend distributions and capital growth 
C) Capital gains distributions and capital growth 
D) Dividend distributions only

Question 19

Index funds are an example of managed funds.

Accepted Answer

A) True 
 B)False

Question 20

Mutual funds have a low- or no-cost exchange privilege that permits mutual fund shareholders to easily swap shares on a dollar-for-dollar basis for shares in another mutual fund managed by the same mutual fund family.

Accepted Answer

A) True 
 B)False

If the stock owned by a mutual fund increases in value,the net asset value of the fund will fall.

International funds are the only funds that can invest in foreign securities.

The NAV of a mutual fund with a market value of its assets of $100 million and 10 million shares outstanding would be $10.

The Amalgamated Fund has assets with a market value of $25 million dollars,liabilities of $1 million dollars and 10 million shares outstanding.Its net asset value is

Switching between mutual funds in the same family of funds can typically be done for no fee.

The average expense ratio for diversified stock mutual funds is around ____ percent.

A closed-end investment company issues a limited and fixed number of shares and does not buy them back.

Mutual funds that charge a load do so to compensate

Compute the net asset value for a share of a mutual fund with the following characteristics: Market value of assets: $6,257,562,000 Market value of liabilities: $123,800,000 Number of shares outstanding: 134,430,000

A mutual fund that does not assess a sales charge at the time of the investment purchase is called a ____ fund.

Mutual funds that invest in lesser-known companies with a market capitalization of $2-$10 billion that are expected to grow rapidly are called ____ funds.

When you buy shares in a mutual fund you are trusting that the fund's investment advisers share your investment objectives.

Low-load mutual funds usually have sales charges of ____ percent.

Advantages of mutual funds include

The Securities and Exchange Commission requires specific disclosure of all types of charges on mutual funds.

Common measures of risk for mutual funds include

The measure of a fund's expenses expressed per dollar of the assets under management is its

____ are received as current income while one owns shares in a mutual fund.

Index funds are an example of managed funds.

Mutual funds have a low- or no-cost exchange privilege that permits mutual fund shareholders to easily swap shares on a dollar-for-dollar basis for shares in another mutual fund managed by the same mutual fund family.

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Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

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Exam 15: Mutual Funds and Exchange Traded Funds

If the stock owned by a mutual fund increases in value,the net asset value of the fund will fall.

International funds are the only funds that can invest in foreign securities.

The NAV of a mutual fund with a market value of its assets of $100 million and 10 million shares outstanding would be $10.

The Amalgamated Fund has assets with a market value of $25 million dollars,liabilities of $1 million dollars and 10 million shares outstanding.Its net asset value is

Switching between mutual funds in the same family of funds can typically be done for no fee.

The average expense ratio for diversified stock mutual funds is around ____ percent.

A closed-end investment company issues a limited and fixed number of shares and does not buy them back.

Mutual funds that charge a load do so to compensate

Compute the net asset value for a share of a mutual fund with the following characteristics: ​ Market value of assets: $6,257,562,000 Market value of liabilities: $123,800,000 Number of shares outstanding: 134,430,000

A mutual fund that does not assess a sales charge at the time of the investment purchase is called a ____ fund.

Mutual funds that invest in lesser-known companies with a market capitalization of $2-$10 billion that are expected to grow rapidly are called ____ funds.

When you buy shares in a mutual fund you are trusting that the fund's investment advisers share your investment objectives.

Low-load mutual funds usually have sales charges of ____ percent.

Advantages of mutual funds include

The Securities and Exchange Commission requires specific disclosure of all types of charges on mutual funds.

Common measures of risk for mutual funds include

The measure of a fund's expenses expressed per dollar of the assets under management is its

____ are received as current income while one owns shares in a mutual fund.

Index funds are an example of managed funds.

Mutual funds have a low- or no-cost exchange privilege that permits mutual fund shareholders to easily swap shares on a dollar-for-dollar basis for shares in another mutual fund managed by the same mutual fund family.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Compute the net asset value for a share of a mutual fund with the following characteristics: Market value of assets: $6,257,562,000 Market value of liabilities: $123,800,000 Number of shares outstanding: 134,430,000