Exam 13: Investing in Mutual Funds

Back-end load funds offer more liquidity to investors than no-load funds.

There are more closed-end investment companies than there are open-end companies.

Advantages of exchange traded funds over mutual funds include a broader market focus.

By using automatic reinvestment plans,dividend and capital gains are used to automatically buy additional shares in the fund.

The price per share of a closed-end investment fund could be lower than its NAV.

If you are a mutual fund investor who needs steady income,you might take advantage of a fund's

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. -You [could | could not] learn in the financial press whether your fund charged a redemption fee.

Asset allocation funds invest in stocks,bonds,and money market securities.

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 primary investment objective of bond mutual funds is [growth | income].

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. -All funds will have [management | 12b-1] fees.

A no-load fund has no

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. -You could drop an automatic investment plan [at any time | only by fulfilling the original agreement].

Another name for a mutual fund is

The major benefit to small investors of mutual funds is diversification.

A mutual fund's NAV is calculated

Global mutual funds can invest both in domestic and international stocks.

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. -Advantages of exchange-traded funds over mutual funds include [narrow | broad] industry selection.

A behavioral bias in mutual fund investing where investors view recent performance as overly indicative of a fund's future performance is known as

Asset allocation funds invest entirely in U.S.and foreign stocks and bonds.

A 12b-1 fee can only be charged by a load mutual fund.