Exam 16: Investing in Mutual Funds

The Capitalist Mutual Fund's net asset value is $26.25. The fund has liabilities of $3 million and 1,600,000 shares have been issued. What is the value of the fund's portfolio?

In late 2011, there were almost 13,000 mutual funds, and the number continues to increase each year.

Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

The fund manager is ultimately responsible for a fund's success.

Melanie Davis is getting ready to purchase shares in a mutual fund. The fund will charge her a sales charge only if she redeems her shares within a stated period of time. What type of shares is she buying?

Another name for lifecycle funds is:

Caroline Campbell is buying shares in a mutual fund that invests in bonds offered by foreign companies and governments. What type of mutual fund is she buying?

All of the following information is contained in a mutual fund's fee table, except:

A mutual fund in which investors pay a commission every time they purchase shares is called a(n) ____________ fund.

Because of up front commission charges, many financial experts and government agencies are critical of:

The All-Star Basic Value Fund's portfolio is valued at $210 million. The fund has liabilities of $5 million, and the investment company sponsoring the fund has issued 16,400,000 shares. What is the fund's net asset value?

Which one of the following statements is false?

Which one of the following statements is false?

Your parents are considering the purchase of shares in a mutual fund. Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

Which of the following would be found in a mutual fund's prospectus?

The commission charge for purchasing fund shares that impose an up-front commission charge ____________ percent.

Why do investors purchase mutual funds instead of purchasing stocks, bonds, or other investments on their own?

A mutual fund that invests in investment-grade corporate debt with maturities between 5 and 10 years is called a(n) ____________ fund.

A mutual fund that requires investors to make regular purchases over a specified period of time is called a:

A closed end-fund is: