Exam 13: Investing in Mutual Funds

A mutual fund that aims for long-term growth through capital appreciation and the reinvestment of income by investing in income producing real property is __________________

With a mutual fund you can diversify your holdings by buying a mutual fund that owns stock in hundreds of different companies.

A closed-end fund is a mutual fund in which shares are issued only when the fund is organized.

Investors in both closed-end and open-end funds can make money by purchasing shares at a low price and then selling them at a higher price.

The Capitalist Mutual Fund's portfolio is valued at $55 million. The fund has liabilities of $4 million, and the investment company sponsoring the fund has issued 2,400,000 shares. What is the fund's net asset value?

In a newspaper quotation, the letter "N" means no load.

A mutual fund designed for investors who are looking for a tax-efficient income stream without trading in capital gains is called a(n) __________ fund.

A mutual fund that seeks to achieve a high level of income and liquidity through investment in short-term money market instruments, such as T-bills, commercial paper, and short-term government bonds is __________________

Which of the following statements is false?

The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is called the:

Most Canadian mutual funds sponsored by the Canadian chartered banks __________________

A mutual fund in which no sales charge is paid by the individual investor is called a(n) ____________ fund.

When Peter Mills went to withdraw $8,000 from the Lowe Fidelity Mutual fund, he was informed that the fund would charge 3 percent of the amount withdrawn. What is the dollar amount of the withdrawal charge?

Which of the following statements is true?

Which of the following statements is false?

As a shareholder in a mutual fund, you should receive a(n)

Explain the difference between a load fund and a no-load fund. From a performance standpoint, is there a significant difference between mutual funds that charge commissions and those that do not?

During 2000, Lianne Majoro received income dividends of $850 and capital gain distributions of $540. The tax consequence is that

An affordable way for investors to invest in a diversified basket of securities; constructed to track the components of a market index such as the S&P 500 or the S&P/TSX Composite is with a(n) ____________ fund.

The Jeremiah Wazan Enterprise Mutual Fund's portfolio is valued at $125,000,000. The fund has liabilities of $5,000,000, and the investment company sponsoring the fund has issued 2,000,000 shares. What is the fund's net asset value?