A) amounts invested in equity and fixed-income mutual funds. B) funds that may be purchased at intervals of 3, 6, or 12 months at the discretion of management. C) amounts invested in domestic and global equities. D) closed-end funds that may be repurchased only once every two years at the discretion of mutual fund management. E) partnerships of investors that pool their funds,which are then managed for a fee. A) amounts invested in equity and fixed-income mutual funds. B) funds that may be purchased at intervals of 3, 6, or 12 months at the discretion of management. C) amounts invested in domestic and global equities. D) closed-end funds that may be repurchased only once every two years at the discretion of mutual fund management. E) partnerships of investors that pool their funds,which are then managed for a fee.

Exam 4: Mutual Funds and Other Investment Companies

A mutual fund had year-end assets of $560,000,000 and liabilities of $26,000,000.There were 23,850,000 shares in the fund at year end.What was the mutual fund's Net Asset Value?

(Multiple Choice)

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Question 21

Of the following types of ETFs,an investor that wishes to invest in a diversified portfolio that tracks the Russell 2000 should choose

(Multiple Choice)

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Question 22

Commingled funds are

(Multiple Choice)

4.8/5

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Question 23

Differences between hedge funds and mutual funds are that

(Multiple Choice)

4.9/5

(81)

Question 24

A mutual fund had year-end assets of $250,000,000 and liabilities of $4,000,000.There were 3,750,000 shares in the fund at year-end.What was the mutual fund's Net Asset Value?

(Multiple Choice)

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Question 25

Of the following types of mutual funds,an investor that wishes to invest in a diversified portfolio of foreign stocks (excluding the U.S.)should choose

(Multiple Choice)

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Question 26

Investors' Choice Fund had NAV per share of $37.25 on January 1,2009.On December 31 of the same year the fund's rate of return for the year was 17.3%.Income distributions were $1.14 and the fund had capital gain distributions of $1.35.Without considering taxes and transactions costs,what ending NAV would you calculate for Investors' Choice?

(Multiple Choice)

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Question 27

Pools of money invested in a portfolio that is fixed for the life of the fund are called

(Multiple Choice)

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Question 28

In 2009 the proportion of mutual funds (based on total assets)specializing in bonds was

(Multiple Choice)

4.8/5

(74)

Question 29

The Yachtsman Fund had NAV per share of $36.12 on January 1,2009.On December 31 of the same year the fund's NAV was $39.71.Income distributions were $0.64 and the fund had capital gain distributions of $1.13.Without considering taxes and transactions costs,what rate of return did an investor receive on the Yachtsman Fund last year?

(Multiple Choice)

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(83)

Question 30

Which of the following statements about Money Market Mutual Funds is true?

(Multiple Choice)

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(86)

Question 31

You purchased shares of a mutual fund at a price of $17 per share at the beginning of the year and paid a front-end load of 5.0%.If the securities in which the fund invested increased in value by 12% during the year,and the fund's expense ratio was 1.0%,your return if you sold the fund at the end of the year would be ____________%.

(Multiple Choice)

4.9/5

(77)

Question 32

Patty O'Furniture purchased 100 shares of Green Isle mutual fund at a net asset value of $42 per share.During the year Patty received dividend income distributions of $2.00 per share and capital gains distributions of $4.30 per share.At the end of the year the shares had a net asset value of $40 per share.What was Patty's rate of return on this investment?

(Multiple Choice)

5.0/5

(81)

Question 33

Jargon Rapid Growth is a mutual fund that has traditionally accepted funds from new investors and issued new shares at net asset value.Jeremy Jargon manages the fund himself and has become concerned that its level of assets has become too high for his management abilities.He issues a statement that Jargon will no longer accept funds from new investors,but will continue to accept additional investments from current shareholders.Which of the following is true about Jargon Rapid Growth fund?

(Multiple Choice)

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Question 34

Discuss the taxation of mutual fund income.

(Essay)

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(77)

Question 35

Of the following types of ETFs,an investor that wishes to invest in a diversified portfolio that tracks the MSCI France Index should choose

(Multiple Choice)

4.9/5

(91)

Question 36

The fee that mutual funds use to help pay for advertising and promotional literature is called a

(Multiple Choice)

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(91)

Question 37

List and describe the more important types of mutual funds according to their investment policy and use.

(Essay)

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(85)

Question 38

Assume that you purchased shares of a mutual fund at a net asset value of $10.00 per share.During the year you received dividend income distributions of $0.05 per share and capital gains distributions of $0.06 per share.At the end of the year the shares had a net asset value of $8.16 per share.What was your rate of return on this investment?

(Multiple Choice)

4.8/5

(61)

Question 39

Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share.During the year you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share.At the end of the year the shares had a net asset value of $13.87 per share.What was your rate of return on this investment?

(Multiple Choice)

4.8/5

(73)

Question 40

Showing 21 - 40 of 71

Exam 4: Mutual Funds and Other Investment Companies

A mutual fund had year-end assets of $560,000,000 and liabilities of $26,000,000.There were 23,850,000 shares in the fund at year end.What was the mutual fund's Net Asset Value?

Of the following types of ETFs,an investor that wishes to invest in a diversified portfolio that tracks the Russell 2000 should choose

Commingled funds are

Differences between hedge funds and mutual funds are that

A mutual fund had year-end assets of $250,000,000 and liabilities of $4,000,000.There were 3,750,000 shares in the fund at year-end.What was the mutual fund's Net Asset Value?

Of the following types of mutual funds,an investor that wishes to invest in a diversified portfolio of foreign stocks (excluding the U.S.)should choose

Pools of money invested in a portfolio that is fixed for the life of the fund are called

In 2009 the proportion of mutual funds (based on total assets)specializing in bonds was

Which of the following statements about Money Market Mutual Funds is true?

Discuss the taxation of mutual fund income.

Of the following types of ETFs,an investor that wishes to invest in a diversified portfolio that tracks the MSCI France Index should choose

The fee that mutual funds use to help pay for advertising and promotional literature is called a

List and describe the more important types of mutual funds according to their investment policy and use.

The Investment Environment

Asset Classes and Financial Instruments

How Securities are Traded

Introduction to Risk,return,and the Historical Record

Risk Aversion and Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, swaps, and Risk Management

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the CFA Institute Appendices

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