Exam 4: Mutual Funds and Other Investment Companies

You invested $7,000 in a mutual fund 28 months ago when the NAV of the fund was $22.30.You have not acquired or sold any shares since that time.Today,the NAV is $21.50.The fund charges a contingent deferred sales charge of 6,5,4,3,2,2,and 1 percent if the shares are redeemed within the first 7 years,respectively.How much money will you receive if you redeem your shares today?

Which type of stock fund focuses primarily on current income?

To determine the actual objective of a fund,you should primarily refer to the:

The High Yield Money Market Fund returned 6.60 percent for the last year.Currently,you own 8,901.1 shares of this fund.If you invested in this fund one year ago,what was the amount of your original investment?

A tax exempt money market fund has an annual return of 3.76 percent.What is your equivalent taxable rate if you are in a 28 percent marginal tax bracket?

Today,you are selling shares of an open-end mutual fund and will be charged a CDSC of 3 percent.The price you will receive per share is equal to:

You want to purchase shares in a fund and also ensure that your money does not support firms that harm the environment.Which type of fund should you purchase?

Jack has managed to save $1,000 and wants to start investing.The financial markets make him nervous as he has very limited financial resources.Which one of the following types of funds is probably best for Jack at this time?

Western States Mutual Fund sold $89.5 million of assets during the year and purchased $82 million of new assets.The average daily assets of the fund were $273 million.What is the fund's turnover rate for the year?

A hedge fund may charge a special performance fee which commonly ranges from:

You want to buy 1,200 shares of a mutual fund that has an NAV of $27.80.The fund charges a 3.75 percent front-end load.How much will you have to spend to make this purchase?

Which type of fund should you purchase if you are interested in investing primarily in countries that have relatively new stock markets?

The Exploratory Fund is a new closed-end fund which just offered its shares to the public.The fund raised $66.5 million and each share sold for $10.The fee for the fund promoter was 5.75 percent of the initial proceeds.What was the value of your initial $22,000 purchase before the shares began trading in the marketplace?

Which of the following will exempt a hedge fund from registering with the SEC?

The value of a load mutual fund's assets less its liabilities,divided by the number of shares outstanding is referred to as the fund's:

Which of the following can you do with an ETF that you cannot do with an open-end fund? I.sell at mid-day prices II.short sell III.buy options on them IV.resell

ETFs are:

Contingent deferred sales charges:

The Blue Star Fund has assets with a market value of $10.6 million and liabilities of $607,000.What is the net asset value if there are 185,000 shares outstanding?

Which one of the following is a common characteristic of a closed-end fund but not of an open-end fund?