Exam 13: Investing in Mutual Funds

Which of the following contains a letter from the president of the investment company, detailed financial information, a schedule of investments, and a letter from the fund's independent auditors?

Nicholas purchased 150 shares of ABC Mutual Fund at $10.50 and sold them one year later at a price of $14.50. His total capital gain was

An investment company sponsoring a mutual fund must give potential investors an annual report.

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase. If she must pay a 5% contingent deferred sales fee, what amount will she actually receive?

The investments in the Alamo Basics Contingency Fund have a current market value of $800 million. The fund also has liabilities that total $60 million. If this mutual fund has 20 million shares, what is the net asset value per share?

A contingent deferred sales load is known as a

Thomas wants to invest in a fund that invests in stock, bonds, and money market instruments. Which of the following will meet his needs?

Which of the following types of stock funds invests in stock issued by companies with a long history of paying dividends?

Open-end mutual funds have managers and closed-end funds do not.

Which of the following types of stock funds invest in stock traded within one specific region of the world?

A family of funds is a grouping of funds that all invest in bonds or all invest in stocks.

How do mutual funds provide returns to their shareholders?

A higher turnover ratio for a mutual fund can result in higher income tax bills.

Stephanie wants to invest in a mutual fund that invests in companies within the same industry. She should put her money into a regional fund.

The Anderson Balanced mutual fund charges a sales load of 4.85%. If you invest $15,000, how much must you pay in commissions?

The investments in the Already Been Counted Fund have a current market value of $600 million. The fund also has liabilities that total $40 million. If this mutual fund has 25 million shares, what is the net asset value per share?

A "good" fund manager has the ability to increase the share value when the economy is good and retain that value when the economy is bad.

Professional advisory services provide detailed information about mutual funds. Which of the following is not a professional advisory service?

Which of the following types of stock funds invests in the same companies included in the Standard & Poor's 500 stock index?

Which of the following have reduced or eliminated mutual fund coverage?