Exam 4: Mutual Funds and Other Investment Companies

As of 2008,approximately _____ of mutual fund assets were invested in money market funds.

Consider a mutual fund with $300 million in assets at the start of the year,and 12 million shares outstanding.If the gross return on assets is 18% and the total expense ratio is 2% of the year end value,what is the rate of return on the fund?

Management fees for open-end and closed-end funds,typically range between _____ and _____.

As of 2008,approximately _____ of mutual fund assets were invested in equity funds.

An official description of a particular mutual fund's planned investment policy can be found in the fund's _____________.

In a recent study,Malkiel finds that evidence of persistence in the performance of mutual funds,________________ in the 1980s.

Net Asset Value is defined as ________________________.

The offer price of an open-end fund is $18.00 and the fund is sold with a front-end load of 5%? What is the fund's NAV?

The top Morningstar mutual fund performance rating is ________.

______ are partnerships of investors with portfolios that are larger than most individual investors but are still too small to warrant managing on a separate basis.

A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year.Throughout the year assets grow at 12%.The fund imposes a 12b-1 fee on all shares equal to 1%.The fee is imposed on year end asset values.If there are no distributions what is the end of year NAV for the fund?

Mutual funds that vary the proportions of funds invested in particular market sectors according to the fund manager's forecast of the performance of that market sector,are called ____________________.

In 2000,the SEC instituted new rules that require funds to disclose _____.

You are considering investing in one of several mutual funds.All the funds under consideration have various combinations of front-end and back-end loads and/or 12b-1 fees.The longer you plan on remaining in the fund you choose,the more likely you will prefer a fund with a __________ rather than a __________,everything else equal.

If you place an order to buy or sell a share of a mutual fund during the trading day the order will be executed at

In the 1970 study,Malkiel found that mutual funds that do well in one period,have an approximately ________ chance of doing well in the subsequent ear period.

Which of the following funds is most likely to have a debt ratio of 70% or higher?

As of 2008,approximately _____ of mutual fund assets were invested in bond funds.

Rank the following fund category from most risky to least risky. I.Equity growth fund II.Balanced fund III.Sector fund IV.Money market fund

Higher portfolio turnover I.results in greater tax liability for investors II.results in greater trading costs for the fund,which investors have to pay for III.is a characteristic of asset allocation funds