Question 1

In 2016, the proportion of hybrid (bond and stock) mutual funds (based on total assets) was

Accepted Answer

A)  21.7%. 
B)  28.0%. 
C)  54.1%. 
D)  8.5%. 
E)  22.6%. 
A)  21.7%. 
B)  28.0%. 
C)  54.1%. 
D)  8.5%. 
E)  22.6%.

Question 2

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

Accepted Answer

A)  SPY. 
B)  EWJ. 
C)  QQQQ. 
D)  IWM. 
E)  VTI. 
A)  SPY. 
B)  EWJ. 
C)  QQQQ. 
D)  IWM. 
E)  VTI.

Question 3

A mutual fund had average daily assets of $4.7 billion in 2016. The fund sold $2.2 billion worth of stock and purchased $3.6 billion worth of stock during the year. The fund's turnover ratio is

Accepted Answer

A)  37.5%. 
B)  22.6%. 
C)  15.3%. 
D)  46.8%. 
E)  20.7%. 
A)  37.5%. 
B)  22.6%. 
C)  15.3%. 
D)  46.8%. 
E)  20.7%.

Question 4

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

Accepted Answer

A)  SPY. 
B)  DIA. 
C)  QQQQ. 
D)  IWM. 
E)  VTI. 
A)  SPY. 
B)  DIA. 
C)  QQQQ. 
D)  IWM. 
E)  VTI.

Question 5

A mutual fund had NAV per share of $36.15 on January 1, 2016. On December 31 of the same year, the fund's rate of return for the year was 14.0%. Income distributions were $1.16, and the fund had capital gain distributions of $2.12. Without considering taxes and transactions costs, what ending NAV would you calculate?

Accepted Answer

A)  $37.93 
B)  $34.52 
C)  $44.69 
D)  $47.25 
E)  $36.28 
A)  $37.93 
B)  $34.52 
C)  $44.69 
D)  $47.25 
E)  $36.28

Question 6

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the S&P 500 should choose

Accepted Answer

A)  SPY. 
B)  DIA. 
C)  QQQ. 
D)  IWM. 
E)  VTI. 
A)  SPY. 
B)  DIA. 
C)  QQQ. 
D)  IWM. 
E)  VTI.

Question 7

A mutual fund had year-end assets of $700,000,000 and liabilities of $7,000,000. There were 40,150,000 shares in the fund at year end. What was the mutual fund's net asset value?

Accepted Answer

A)  $9.63 
B)  $57.71 
C)  $16.42 
D)  $17.87 
E)  $17.26 
A)  $9.63 
B)  $57.71 
C)  $16.42 
D)  $17.87 
E)  $17.26

Question 8

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

Accepted Answer

A)  4.75%. 
B)  5.45%. 
C)  5.65%. 
D)  4.39%. 
A)  4.75%. 
B)  5.45%. 
C)  5.65%. 
D)  4.39%.

Question 9

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

Accepted Answer

A)  international funds. 
B)  global funds. 
C)  regional funds. 
D)  emerging-market funds. 
A)  international funds. 
B)  global funds. 
C)  regional funds. 
D)  emerging-market funds.

Question 10

Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year end. What was Multiple Mutual's net asset value?

Accepted Answer

A)  $18.11 
B)  $18.81 
C)  $69.96 
D)  $7.00 
E)  $181.07 
A)  $18.11 
B)  $18.81 
C)  $69.96 
D)  $7.00 
E)  $181.07

Question 11

A mutual fund had average daily assets of $2.0 billion in 2016. The fund sold $500 million worth of stock and purchased $600 million worth of stock during the year. The fund's turnover ratio is

Accepted Answer

A)  27.5%. 
B)  12%. 
C)  15%. 
D)  25%. 
E)  20%. 
A)  27.5%. 
B)  12%. 
C)  15%. 
D)  25%. 
E)  20%.

Question 12

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?

Accepted Answer

A)  5.43% 
B)  10.24% 
C)  7.19% 
D)  12.44% 
E)  9.18% 
A)  5.43% 
B)  10.24% 
C)  7.19% 
D)  12.44% 
E)  9.18%

Question 13

As of 2016, which class of mutual funds had the largest amount of assets invested?

Accepted Answer

A)  Equity funds 
B)  Bond funds 
C)  Mixed asset classes, such as asset allocation funds 
D)  Money market funds 
E)  Global funds 
A)  Equity funds 
B)  Bond funds 
C)  Mixed asset classes, such as asset allocation funds 
D)  Money market funds 
E)  Global funds

Question 14

You purchased shares of a mutual fund at a price of $12 per share at the beginning of the year and paid a front-end load of 4.75%. If the securities in which the fund invested increased in value by 9% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would be

Accepted Answer

A)  4.75%. 
B)  3.54%. 
C)  2.65%. 
D)  2.39%. 
A)  4.75%. 
B)  3.54%. 
C)  2.65%. 
D)  2.39%.

In 2016, the proportion of hybrid (bond and stock) mutual funds (based on total assets) was

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

A mutual fund had average daily assets of $4.7 billion in 2016. The fund sold $2.2 billion worth of stock and purchased $3.6 billion worth of stock during the year. The fund's turnover ratio is

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

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the S&P 500 should choose

A mutual fund had year-end assets of $700,000,000 and liabilities of $7,000,000. There were 40,150,000 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 who wishes to invest in a diversified portfolio of foreign stocks (excluding the U.S.) should choose

Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year end. What was Multiple Mutual's net asset value?

A mutual fund had average daily assets of $2.0 billion in 2016. The fund sold $500 million worth of stock and purchased $600 million worth of stock during the year. The fund's turnover ratio is

As of 2016, which class of mutual funds had the largest amount of assets invested?

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Risk, Return, and the Historical Record

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

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

Exam 4: Mutual Funds and Other Investment Companies

In 2016, the proportion of hybrid (bond and stock) mutual funds (based on total assets) was

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

A mutual fund had average daily assets of $4.7 billion in 2016. The fund sold $2.2 billion worth of stock and purchased $3.6 billion worth of stock during the year. The fund's turnover ratio is

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

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the S&P 500 should choose

A mutual fund had year-end assets of $700,000,000 and liabilities of $7,000,000. There were 40,150,000 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 who wishes to invest in a diversified portfolio of foreign stocks (excluding the U.S.) should choose

Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at year end. What was Multiple Mutual's net asset value?

A mutual fund had average daily assets of $2.0 billion in 2016. The fund sold $500 million worth of stock and purchased $600 million worth of stock during the year. The fund's turnover ratio is

As of 2016, which class of mutual funds had the largest amount of assets invested?

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Risk, Return, and the Historical Record

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

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters