Question 1

Socially responsible funds typically avoid investing in

Accepted Answer

A) environmentally sound companies. 
B) alcohol and tobacco stocks. 
C) car companies that do not promote safety. 
D) fast food chains that sell meat. 
E) all of these. 
A) environmentally sound companies. 
B) alcohol and tobacco stocks. 
C) car companies that do not promote safety. 
D) fast food chains that sell meat. 
E) all of these.

Question 2

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 [?custodian | ?investment advisor] buys and sells the stocks or bonds of a mutual fund.

Accepted Answer

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

Question 3

A downside of investing in income property is

Accepted Answer

A) depreciation. 
B) appreciation in value. 
C) low degree of financial leverage. 
D) high taxes. 
E) maintenance costs. 
A) depreciation. 
B) appreciation in value. 
C) low degree of financial leverage. 
D) high taxes. 
E) maintenance costs.

Question 4

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.
-Individuals would not trade among themselves in [a closed-end | an open-end] investment company.

Accepted Answer

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

Question 5

What would the NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

Accepted Answer

A) $10.40 
B) $10.00 
C) $9.60 
D) $9.40 
E) $9.20 
A) $10.40 
B) $10.00 
C) $9.60 
D) $9.40 
E) $9.20

Question 6

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.
-First-time real estate investors often purchase [?commercial | ?residential] properties.

Accepted Answer

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

Question 7

Indexed funds have high realized capital gains.

Accepted Answer

A) True 
 B)False

Question 8

Closed-ended mutual funds are guaranteed,they cannot lose value.

Accepted Answer

A) True 
 B)False

Question 9

The size of a mutual fund's management fee is related to the fund's performance.

Accepted Answer

A) True 
 B)False

Question 10

To be a true no-load fund,there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.

Accepted Answer

A) 0%; 0.00% 
B) 0%; 0.25% 
C) 0%; 1.00% 
D) 3%; 0.25% 
E) 3%; 1.00% 
A) 0%; 0.00% 
B) 0%; 0.25% 
C) 0%; 1.00% 
D) 3%; 0.25% 
E) 3%; 1.00%

Question 11

First-time real estate investors should consider investing in commercial properties.

Accepted Answer

A) True 
 B)False

Question 12

Generally speaking,socially responsible funds abstain from investing in alcohol,gambling,or tobacco stocks.

Accepted Answer

A) True 
 B)False

Question 13

The lower the R2,the closer the relationship between an ETF and its associated target index.

Accepted Answer

A) True 
 B)False

Question 14

Index funds,while trying to match market performance,consistently underperform market benchmarks.

Accepted Answer

A) True 
 B)False

Question 15

A mutual fund always provides active professional investment management.

Accepted Answer

A) True 
 B)False

Question 16

A fund's prospectus would provide information about a fund's fee structure.

Accepted Answer

A) True 
 B)False

Question 17

A technology fund is an example of a sector fund.

Accepted Answer

A) True 
 B)False

Question 18

An example of a commercial property is a(n)

Accepted Answer

A) office building. 
B) shopping mall. 
C) warehouse. 
D) hotel. 
E) all of these. 
A) office building. 
B) shopping mall. 
C) warehouse. 
D) hotel. 
E) all of these.

Question 19

The major advantage of mutual funds to the small investor is

Accepted Answer

A) diversification. 
B) professional management. 
C) low cost. 
D) convenience. 
E) liquidity. 
A) diversification. 
B) professional management. 
C) low cost. 
D) convenience. 
E) liquidity.

Question 20

Growth funds are mutual funds designed for short-term investing.

Accepted Answer

A) True 
 B)False

Socially responsible funds typically avoid investing in

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 [?custodian | ?investment advisor] buys and sells the stocks or bonds of a mutual fund.

A downside of investing in income property is

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. -Individuals would not trade among themselves in [a closed-end | an open-end] investment company.

What would the NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

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. -First-time real estate investors often purchase [?commercial | ?residential] properties.

Indexed funds have high realized capital gains.

Closed-ended mutual funds are guaranteed,they cannot lose value.

The size of a mutual fund's management fee is related to the fund's performance.

To be a true no-load fund,there can be a maximum load and a maximum 12(b)-1 fee.

First-time real estate investors should consider investing in commercial properties.

Generally speaking,socially responsible funds abstain from investing in alcohol,gambling,or tobacco stocks.

The lower the R²,the closer the relationship between an ETF and its associated target index.

Index funds,while trying to match market performance,consistently underperform market benchmarks.

A mutual fund always provides active professional investment management.

A fund's prospectus would provide information about a fund's fee structure.

A technology fund is an example of a sector fund.

An example of a commercial property is a(n)

The major advantage of mutual funds to the small investor is

Growth funds are mutual funds designed for short-term investing.

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

Socially responsible funds typically avoid investing in

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 [?custodian | ?investment advisor] buys and sells the stocks or bonds of a mutual fund.

A downside of investing in income property is

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. -Individuals would not trade among themselves in [a closed-end | an open-end] investment company.

What would the NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

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. -First-time real estate investors often purchase [?commercial | ?residential] properties.

Indexed funds have high realized capital gains.

Closed-ended mutual funds are guaranteed,they cannot lose value.

The size of a mutual fund's management fee is related to the fund's performance.

To be a true no-load fund,there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.

First-time real estate investors should consider investing in commercial properties.

Generally speaking,socially responsible funds abstain from investing in alcohol,gambling,or tobacco stocks.

The lower the R2,the closer the relationship between an ETF and its associated target index.

Index funds,while trying to match market performance,consistently underperform market benchmarks.

A mutual fund always provides active professional investment management.

A fund's prospectus would provide information about a fund's fee structure.

A technology fund is an example of a sector fund.

An example of a commercial property is a(n)

The major advantage of mutual funds to the small investor is

Growth funds are mutual funds designed for short-term investing.

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

To be a true no-load fund,there can be a maximum load and a maximum 12(b)-1 fee.

The lower the R²,the closer the relationship between an ETF and its associated target index.