Exam 5: Financial Services: Mutual Funds and Hedge Funds

An investor purchases fund shares with a 3 percent front-end load and expects to hold the shares for 10 years. The annualized sales load incurred by the investor is _______ per year.

The chief compliance officer of a mutual fund reports directly to the senior executives of the fund management company.

Mutual fund supermarkets often allow investors to purchase funds within large number of fund companies with no transaction fees.

U.S. mutual fund companies have made significant progress in entering Japan and Europe.

The SEC requires mutual funds to disclose the risk to investors of frequent trading in fund shares.

Which of the following hedge fund objectives would be classified under the "more risky" category?

The number of funds and assets size of the mutual fund industry have grown dramatically since 1970 because of the introduction of

Historical evidence indicates that the benefits of greater management attention in load funds do not outweigh the disadvantages of the load fee.

Match the following pieces of legislation with the function achieved by each regulation as stated in question -Regulates the activities of mutual fund advisors.

The type of abusive activity that involves cases where investors were able to buy or sell mutual fund shares long after the price had been set each day is

Closed-end investment companies

The SEC requires that prospectuses or advertisements regarding a mutual fund contain information that returns of the mutual fund carry some risk.

As a result of illegal and abusive activities in recent years, new rules and regulations were imposed on mutual fund companies in 2004. These rules were intended to

Which of the following is common to both hedge funds and mutual funds?

Mutual funds often offer multiple share classes which differentiate between different methods of paying the sales loads and management fees.

The long-term mutual fund sector includes

The largest proportion of assets of money market mutual funds in 2012 was

Which of the following hedge fund objectives would be classified under the "risk avoidance" category?

In total, about the percentage of all retirement plan investments are in institutional funds.

The Investment Advisors Act of 1940 sets out rules to prevent conflicts of interest, fraud, and excessive fees or charges for mutual fund shares.