Exam 4: Mutual Funds and Other Investment Companies

Renee wants to invest in a bond fund.She is a very conservative investor with a high marginal tax rate.Which one of the following types of bond funds might be most suited for her situation?

Exchange traded notes were first created to mimic ________ index.

Which one of the following types of funds is most apt to invest in preferred stocks?

Which one of the following statements is correct concerning an open-end mutual fund which charges a front-end load?

When the offering price and the NAV are the same,you know that a mutual fund is not charging which one of the following fees?

A mutual fund has an NAV of $10.25 with 252,000 shares outstanding.What is the value of the fund's assets if it has $340,500 in liabilities?

A fee that is charged at the time mutual fund shares are purchased by an investor is called a:

Trading symbols for mutual funds end in which letter?

Besides size,how else does a mutual fund style box classify equity funds?

While reviewing mutual fund reports,Allen noticed that a fund was reported as "closed".What is the primary reason for closing a fund?

At the beginning of the year,you invested $5,000 in a no-load mutual fund with a NAV of $25.00.At the end of the year,the fund distributed $1.10 per share in short-term earnings and $3.10 per share in long-term earnings.The end of year NAV was $24.60.What was your annual rate of return on this investment?

Which type of stock fund focuses on maximizing share price appreciation?

Mutual funds are generally created to:

You recently purchased a fund at a price of $39.97 per share.The NAV at the time of purchase was $40.67.You must have purchased a(n)________ fund.

What are the primary differences between an ETF and an ETN?

One year ago,Allison purchased 350 shares of a mutual fund which has a front-end load of 5.25 percent.The NAV at the time of purchase was $30.Today,the NAV is $33.The fund had total annual expenses of 1.65 percent.There were no fund distributions this past year.What is Allison's rate of return for the year?

What are the two best reasons for considering a load fund?

Which one of the following types of bond funds tends to have the highest level of risk?

An investment company that will repurchase shares at any time is called a(n)________ fund.

The Stable Utility Fund has an offering price of $54.11 and an NAV of $52.48.What is the front-end load percentage?