Exam 4: Mutual Funds and Other Investment Companies

One year ago,you purchased $8,000 worth of a mutual fund at an offering price of $41.40 a share.Today,the fund distributed $0.20 per share in short-term gains and $1.04 per share in long-term gains.The current offering price is $46.60.The fund has a front-end load of 5 percent and total annual operating expenses of 1.25 percent.What is your rate of return on this investment?

You invested $4,500 in a mutual fund 38 months ago when the NAV of the fund was $31.80.You have not acquired or sold any shares since that time.Today,the NAV is $30.84.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?

A fund which tracks the S&P 500 would best be classified as which type of fund?

Which type of investor is most apt to purchase municipal bond funds and why?

Which of the following are three key advantages of mutual funds?

The Atlas Mutual Fund owns the following stocks: The fund has no liabilities and has 65,000 shares outstanding.What is the NAV?

One year ago,you purchased 421 shares of a mutual fund when both the offering price and the NAV were $10.80 a share.Today,the NAV is $10.64 after today's distribution of $1.48 per share in short-term gains.There is no long-term gain distribution.What is your rate of return?