Exam 4: Mutual Funds and Other Investment Companies

You want to purchase a security that tracks the S&P 500.What types of securities can you purchase to accomplish this goal? Which type of security would you purchase and why would you choose that security over your other options?

A mutual fund is created by which one of the following parties?

Which one of the following types of funds invests in both stocks and bonds and actively attempts to time the market?

Which one of the following is not included in the fee table found in a mutual fund prospectus?

An open-end fund which invests solely in short-term debt obligations is called a(n)________ mutual fund.

Money market mutual funds:

A 12b-1 fee is a fee charged by a mutual fund:

A mutual fund is owned by:

The Latest Trend Fund has $2,648,900 in assets,and $1,878,400 in liabilities.How many shares are outstanding if the NAV is $10.07?

The turnover for a mutual fund refers to:

The Emerging Fund is a new closed-end fund which just offered its shares to the public.The fund raised $75 million and each share sold for $20.The fee for the fund promoter was 4.80 percent of the initial proceeds.What was the value of your initial $20,000 purchase before the shares began trading in the marketplace?

Which one of the following is a general characteristic of a tax-managed fund?

Which one of the following statements is true?

Which one of the following characteristics best fits an index fund?

Matt owns 724.08 shares of a fund which has a current NAV of $41.04.He has owned all of these shares for 3.3 years.The fund charges a contingent deferred sales charge which starts at 5 percent for the first year and declines by 1 percent each year.How much cash will he receive if he redeems all of his shares today?

Six years ago,you purchased 210.20 shares of a mutual fund.Since then,you have reinvested your fund dividends and acquired an additional 36.32 shares.The fund currently has an NAV of $38.95.The fund charges a contingent deferred sales charge of 5 percent for the first 2 years after which time the charge declines by 1 percent a year.How much money will you receive if you redeem all of your shares today?

The Aggressive Eastern Fund sold $167 million of assets during the year and purchased $162 million of new assets.The average daily assets of the fund were $248 million.What is the turnover rate?

Currently,the term "hedge fund" refers to:

Five years ago,you purchased 220.80 shares of a mutual fund.Since then,you have reinvested your fund dividends and acquired an additional 35.10 shares.The fund currently has an NAV of $37.60.The fund charges a contingent deferred sales charge of 5 percent for the first 2 years after which time the charge declines by 1 percent a year.How much money will you receive if you redeem all of your shares today?

The net asset value of a money market mutual fund: