Question 1

A mutual fund's price per share will increase if its underlying holdings increase in value.

Accepted Answer

A) True 
 B)False

Question 2

Sector funds concentrate their holdings in specific targeted markets.

Accepted Answer

A) True 
 B)False

Question 3

Redeeming your mutual fund shares might result in a charge called

Accepted Answer

A) a back-end load. 
B) a front-end load. 
C) a redemption tax. 
D) a management fee. 
E) none of these. 
A) a back-end load. 
B) a front-end load. 
C) a redemption tax. 
D) a management fee. 
E) none of these.

Question 4

The approximate yield on a mutual fund depends only on the fund's dividend income and capital gains distributions.

Accepted Answer

A) True 
 B)False

Question 5

A mutual fund's NAV is its

Accepted Answer

A) normal average value. 
B) nationally advertized value. 
C) noted assessment vision. 
D) net asset value. 
E) none of these. 
A) normal average value. 
B) nationally advertized value. 
C) noted assessment vision. 
D) net asset value. 
E) none of these.

Question 6

Future fund performance is the real key to investment success with mutual funds.One important element to examine when attempting to predict a fund's future performance is the

Accepted Answer

A) performance of other funds. 
B) nature of the fund being considered. 
C) future course of the market. 
D) fund's past performance. 
E) all of these. 
A) performance of other funds. 
B) nature of the fund being considered. 
C) future course of the market. 
D) fund's past performance. 
E) all of these.

Question 7

In The Wall Street Journal's listing of mutual funds,an "r" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Accepted Answer

A) front-end load 
B) back-end load 
C) 12b-1 fee 
D) management fee 
E) none of these 
A) front-end load 
B) back-end load 
C) 12b-1 fee 
D) management fee 
E) none of these

Question 8

Value funds look for stocks with relatively all the following except

Accepted Answer

A) high dividend yields. 
B) moderate amounts of leverage. 
C) low P/E ratios. 
D) rapid growth. 
E) undiscovered companies. 
A) high dividend yields. 
B) moderate amounts of leverage. 
C) low P/E ratios. 
D) rapid growth. 
E) undiscovered companies.

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Growth funds [?do | ?do not] involve a fair amount of risk.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Open-ended mutual funds companies buy their shares back from investors at NAV.

Accepted Answer

A) True 
 B)False

Question 11

The current market value of all the securities a mutual fund owns is called the

Accepted Answer

A) market value. 
B) par value. 
C) net asset value. 
D) book value. 
E) liquidation value. 
A) market value. 
B) par value. 
C) net asset value. 
D) book value. 
E) liquidation value.

Question 12

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The market value of your mutual fund shares will move in the [same | opposite] direction as the market value of the underlying securities.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A mutual fund cannot charge more than [?6.5 | ?8.5] percent in total sales charges and fees.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 15

Open-ended mutual funds can be traded on an intraday basis.

Accepted Answer

A) True 
 B)False

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Real estate typically exhibits [?less | ??more] volatility than stocks.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Both load and no-load funds will always charge a

Accepted Answer

A) transaction fee. 
B) 12b-1 fee. 
C) management fee. 
D) fee on the sale of the shares. 
E) redemption fee. 
A) transaction fee. 
B) 12b-1 fee. 
C) management fee. 
D) fee on the sale of the shares. 
E) redemption fee.

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[?Equity | ?Mortgage] REITs own income-producing real estate.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Value funds are comprised of stocks with [low | high] P/E ratios.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

An open-end investment company is commonly known as a mutual fund.

Accepted Answer

A) True 
 B)False

A mutual fund's price per share will increase if its underlying holdings increase in value.

Sector funds concentrate their holdings in specific targeted markets.

Redeeming your mutual fund shares might result in a charge called

The approximate yield on a mutual fund depends only on the fund's dividend income and capital gains distributions.

A mutual fund's NAV is its

Future fund performance is the real key to investment success with mutual funds.One important element to examine when attempting to predict a fund's future performance is the

In The Wall Street Journal's listing of mutual funds,an "r" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Value funds look for stocks with relatively all the following except

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Growth funds [?do | ?do not] involve a fair amount of risk.

Open-ended mutual funds companies buy their shares back from investors at NAV.

The current market value of all the securities a mutual fund owns is called the

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A mutual fund cannot charge more than [?6.5 | ?8.5] percent in total sales charges and fees.

The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.

Open-ended mutual funds can be traded on an intraday basis.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Real estate typically exhibits [?less | ??more] volatility than stocks.

Both load and no-load funds will always charge a

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[?Equity | ?Mortgage] REITs own income-producing real estate.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Value funds are comprised of stocks with [low | high] P/E ratios.

An open-end investment company is commonly known as a mutual fund.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters

Exam 13: Investing in Mutual Funds

A mutual fund's price per share will increase if its underlying holdings increase in value.

Sector funds concentrate their holdings in specific targeted markets.

Redeeming your mutual fund shares might result in a charge called

The approximate yield on a mutual fund depends only on the fund's dividend income and capital gains distributions.

A mutual fund's NAV is its

Future fund performance is the real key to investment success with mutual funds.One important element to examine when attempting to predict a fund's future performance is the

In The Wall Street Journal's listing of mutual funds,an "r" after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.

Value funds look for stocks with relatively all the following except

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Growth funds [?do | ?do not] involve a fair amount of risk.

Open-ended mutual funds companies buy their shares back from investors at NAV.

The current market value of all the securities a mutual fund owns is called the

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A mutual fund cannot charge more than [?6.5 | ?8.5] percent in total sales charges and fees.

The net asset value (NAV)per share is found by dividing the market value of the fund's securities less the fund's liabilities by the number of shares outstanding.

Open-ended mutual funds can be traded on an intraday basis.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Real estate typically exhibits [?less | ??more] volatility than stocks.

Both load and no-load funds will always charge a

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[?Equity | ?Mortgage] REITs own income-producing real estate.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Value funds are comprised of stocks with [low | high] P/E ratios.

An open-end investment company is commonly known as a mutual fund.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Planning for Retirement

Preserving Your Estate

Filters