Question 1

Regarding load and no-load mutual funds,

Accepted Answer

A) load funds usually outperform no-load funds. 
B) no-load funds perform just as well as load funds when the fees are ignored. 
C) the two types of funds perform about the same considering the fees. 
D) load funds may be bought directly,where no-load funds must be purchased through a broker. 
A) load funds usually outperform no-load funds. 
B) no-load funds perform just as well as load funds when the fees are ignored. 
C) the two types of funds perform about the same considering the fees. 
D) load funds may be bought directly,where no-load funds must be purchased through a broker.

Question 2

How much money would you need to purchase 400 shares of a mutual fund with a NAV of $55 per share and a 3 percent load? (Round to the nearest dollar.)
(a)$22,000
(b)$22,680
(c)$23,200
(d)$22,660

Accepted Answer

(b)(400 sh

Question 3

The price per share for a closed-end mutual fund can differ from the fund's NAV per share.

Accepted Answer

A) True 
 B)False

Question 4

Capital appreciation funds are mutual funds that focus on stocks that are expected to grow at a very high rate.

Accepted Answer

A) True 
 B)False

Question 5

Capital appreciation funds tend to invest in stocks that distribute little or no dividends so that earnings can be reinvested for expansion.

Accepted Answer

A) True 
 B)False

Question 6

Municipal bond funds have tax advantages over other kinds of mutual funds.

Accepted Answer

A) True 
 B)False

Question 7

Choosing a mutual fund or an investment company involves reviewing past performance and also comparing fees and expenses charged.

Accepted Answer

A) True 
 B)False

Question 8

________ mutual funds invest in foreign bonds as well as U.S.bonds.

Accepted Answer

A) International bond 
B) Index 
C) Treasury bond 
D) Global bond 
A) International bond 
B) Index 
C) Treasury bond 
D) Global bond

Question 9

Arrange the following five stock funds starting with the highest return and risk to the lowest: index fund,capital appreciation,Internet sector fund,income fund,growth stock fund.

Accepted Answer

Internet sector fund

Question 10

Which of the following characteristics are not true of closed-end funds?

Accepted Answer

A) They are not regulated 
B) They do not repurchase shares from investors 
C) They are bought and sold on stock exchanges 
D) They may sell above or below NAV 
A) They are not regulated 
B) They do not repurchase shares from investors 
C) They are bought and sold on stock exchanges 
D) They may sell above or below NAV

Question 11

Before investing in mutual funds,discuss other issues that you would wish to address in your overall financial plan.

Accepted Answer

You would wish to maintain ade

Question 12

In most cases,the fees charged by load funds go to stockbrokers or other financial advisors who execute transactions for investors.

Accepted Answer

A) True 
 B)False

Question 13

Balanced growth and income funds contain both growth stocks and stocks that pay high dividends.

Accepted Answer

A) True 
 B)False

Question 14

High yield bond funds have a ________ potential return and ________ risk.

Accepted Answer

A) high; low 
B) high; high 
C) low; high 
D) low; low 
A) high; low 
B) high; high 
C) low; high 
D) low; low

Question 15

Which of the following is a stock mutual fund?

Accepted Answer

A) Ginnie Mae 
B) Balanced growth and income 
C) Municipal 
D) Treasury 
A) Ginnie Mae 
B) Balanced growth and income 
C) Municipal 
D) Treasury

Question 16

A small-cap fund focuses on firms that are relatively small and somewhat overlap capital appreciation funds.

Accepted Answer

A) True 
 B)False

Question 17

In deciding if a no-load mutual fund is a good investment for you,you should carefully consider all of the following except

Accepted Answer

A) the fund's investment objective. 
B) the broker's recommendations. 
C) the fund's investment strategy. 
D) your risk tolerance level. 
A) the fund's investment objective. 
B) the broker's recommendations. 
C) the fund's investment strategy. 
D) your risk tolerance level.

Question 18

The best investment strategy is to

Accepted Answer

A) diversify across stock and bond mutual funds with different objectives. 
B) hold only bond mutual funds from U.S.corporations. 
C) buy only one or two stock mutual funds. 
D) buy individual stocks and bonds in different sectors. 
A) diversify across stock and bond mutual funds with different objectives. 
B) hold only bond mutual funds from U.S.corporations. 
C) buy only one or two stock mutual funds. 
D) buy individual stocks and bonds in different sectors.

Question 19

The price of shares in a mutual fund is referred to as the ________.

Accepted Answer

The answer of The price of shares in a mutual...

Question 20

On the average,actively managed mutual funds have an expense ratio of about

Accepted Answer

A) 1)5 percent. 
B) 2)5 percent. 
C) 3 percent. 
D) 5 percent. 
A) 1)5 percent. 
B) 2)5 percent. 
C) 3 percent. 
D) 5 percent.

Exam 17: Investing in Mutual Funds

Regarding load and no-load mutual funds,

How much money would you need to purchase 400 shares of a mutual fund with a NAV of $55 per share and a 3 percent load? (Round to the nearest dollar.) (a)$22,000 (b)$22,680 (c)$23,200 (d)$22,660

The price per share for a closed-end mutual fund can differ from the fund's NAV per share.

Capital appreciation funds are mutual funds that focus on stocks that are expected to grow at a very high rate.

Capital appreciation funds tend to invest in stocks that distribute little or no dividends so that earnings can be reinvested for expansion.

Municipal bond funds have tax advantages over other kinds of mutual funds.

Choosing a mutual fund or an investment company involves reviewing past performance and also comparing fees and expenses charged.

________ mutual funds invest in foreign bonds as well as U.S.bonds.

Arrange the following five stock funds starting with the highest return and risk to the lowest: index fund,capital appreciation,Internet sector fund,income fund,growth stock fund.

Which of the following characteristics are not true of closed-end funds?

Before investing in mutual funds,discuss other issues that you would wish to address in your overall financial plan.

In most cases,the fees charged by load funds go to stockbrokers or other financial advisors who execute transactions for investors.

Balanced growth and income funds contain both growth stocks and stocks that pay high dividends.

High yield bond funds have a ________ potential return and ________ risk.

Which of the following is a stock mutual fund?

A small-cap fund focuses on firms that are relatively small and somewhat overlap capital appreciation funds.

In deciding if a no-load mutual fund is a good investment for you,you should carefully consider all of the following except

The best investment strategy is to

The price of shares in a mutual fund is referred to as the ________.

On the average,actively managed mutual funds have an expense ratio of about

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

High yield bond funds have a potential return and risk.