Exam 20: The Mutual Fund Industry

From largest to smallest in terms of total assets,the four classes of mutual funds are

________ funds are the simplest type of investment funds to manage.

The largest share of total investment in mutual funds is in

The primary purpose of loads is to provide compensation for sales brokers.

People who take their money out of insured bank deposits to invest in uninsured money market mutual funds have ________ risk because money market funds invest in ________ assets.

The origins of mutual funds can be traced back to the mid to late 1800s in ________.

A mutual fund's board of directors picks the securities that will be held and makes buy and sell decisions.

A deferred load is a fee charged when shares in a mutual fund are redeemed.

________ means the investors can convert their investment into cash quickly at a low cost.

Whether a fund is organized as a closed- or an open-end fund,is will have the same basic organizational structure.

A deferred-load mutual fund charges a commission

Hedge funds are

The net asset value of a mutual fund is

________ enables mutual funds to consistently outperform a randomly selected group of stocks.

Among the investors in mutual funds,only about 25% cite preparing for retirement as one of their main reasons for holding shares.

SEC research suggests that about three-fourths of mutual funds let privileged shareholders engage in market timing.

The largest share of assets held by money market mutual funds is

Mutual funds offer investors all of the following except

At the start of 2014,one share of Berkshire Hathaway's A-shares was trading at over $150,000. ________ in an mutual fund gives a small investor access to these shares.

Mutual fund companies frequently offer a number of separate mutual funds called ________.