Exam 13: Investing in Mutual Funds

The expense ratio is the amount that investors pay for all of a mutual fund's management fees and operating costs.

A socially responsible fund invests in companies that produce tobacco, nuclear energy, and weapons in order to influence the boards to change the companies' mission statements.

Shelby purchased 100 shares of ABCD Growth fund and had income dividends of $15, capital gain distributions of $35, and a capital gain of $120 in the year she sold her shares, which resulted in a total dollar return of $170.

An "A fund" is a mutual fund in which investors may pay a commission as high as 9.5% of the purchase price for investments.

Which of the following types of stock funds invests in stock issued by companies throughout the world outside the United States?

Melinda wants to withdraw some money from her mutual fund. She has a minimum asset value of $10,000. Which of the following is not an option available for her to systematically withdraw some money?

Brenda wants to invest in a fund that will outperform most others over many years. On average, she would be better off to invest in an index fund instead of a managed closed-end fund.

Which of the following types of stock funds invests in stock issued by companies expecting higher-than-average revenue and earnings growth?

Time is an important factor when evaluating a managed mutual fund for which of the following?

Over many years, the majority of managed mutual funds outperform the Standard & Poor's 500 stock index.

The only way to get reliable information about mutual funds is to pay a fee for it.

If Ryan wants to invest in an index mutual fund, he should not expect his fund to behave differently than the underlying index.

Mutual funds provide amateur management.

Which class of shares charges a commission (sales charge) when shares are purchased?

The majority of all mutual funds are closed-end funds offered by investment companies.

Cynthia received an IRS Form 1099DIV. This form is sent at the end of each quarter to specify how much she received in income dividends and capital gain distributions.

An exchange-traded fund is actively managed by professional fund managers and shares are traded on the floors of stock exchanges.

An aggressive growth fund invests in companies with a long history of paying dividends.

If you start a new job and are offered the opportunity to participate in the company's 401(k) or 403(b) retirement plan, which of the following decisions can affect your financial future?

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 will her total fee be?