Exam 17: Investing in Mutual Funds

Treasury bond funds with short maturities have ________ default risk and ________ interest rate risk.

A(n)________ is a document that provides financial information about a mutual fund,including expenses and past performance.

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

How much money would you need to purchase 400 shares of a mutual fund with an NAV of $55 per share and a 3% load?

Of the management,advertising,and administrative fees charged by mutual funds,normally the management fee is the smallest.

List five considerations or characteristics when purchasing a mutual fund.

The net asset value (NAV)per share of a mutual fund is determined by the market value of securities owned minus liabilities divided by the number of mutual fund shares outstanding.

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

A breakdown of the fees and expenses of a mutual fund is not one of the items addressed in a prospectus.

Mutual funds that sell shares directly to investors and repurchase shares investors want to sell are called ________ funds.

________ mutual funds invest in both foreign bonds and U.S.bonds.

Capital gains from mutual funds can be received if the mutual fund makes a profit on the shares it sells or if an individual investor realizes a gain on the sale of mutual fund shares.

Lipper indexes indicate the mean return for various types of mutual funds.

Mutual funds pool money from investors to purchase portfolios of investments.

A mutual fund that does not charge investors a fee and sells direct to investors is a(n)________ mutual fund.

Before investing in a mutual fund the very least you should do is

Which of the following is not a source of profits for owners of a stock mutual fund?

A family of mutual funds is

When evaluating a mutual fund prior to deciding to invest,you should consider

High yield (junk)bond funds focus on relatively risky bonds issued by firms that are subject to