Exam 4: Mutual Funds and Other Investment Companies

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 ________.

The greatest percentage of mutual fund assets are invested in ________.

________ is an example of an exchange-traded fund.

Most real estate investment trusts (REITs) have a debt ratio of around ________.

Mutual fund returns may be granted pass-through status if ________.

Which one of the following invests in a portfolio that is fixed for the life of the fund?

As of 2017, approximately ________ of mutual fund assets were invested in money market funds.

The difference between balanced funds and asset allocation funds is that ________.

A contingent deferred sales load is commonly called a ________.

The top Morningstar mutual fund performance rating is ________.

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

Revenue sharing with respect to mutual funds refers to ________.

You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees, and a 2% back-end load, which decreases .5% per year. How much will you pay in fees on a $10,000 investment that does not grow if you cash out after 3 years of no gain?

Which of the following typically employ significant amounts of leverage? I. Hedge funds II. REITs III. Money market funds IV. Equity mutual funds

Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million shares at the start of the year and with $500 million in assets, 40 million in debt, and 18 million shares at the end of the year. During the year investors have received income distributions of $.50 per share and capital gain distributions of $.30 per share. If the total expense ratio is .75%, what is the rate of return on the fund?

Mutual funds account for roughly ________ of investment company assets.

Harold has just taken his company public and owns a large quantity of restricted stock. For purposes of diversification, what fund might he help create in order to diversify his holdings?

Which of the following result in a taxable event for investors? I. Short-term capital gain distributions from the fund II. Dividend distributions from the fund III. Long-term capital gain distributions from the fund

The two principal types of REITs are equity trusts, which ________, and mortgage trusts, which ________.

Specialized-sector funds concentrate their investments in ________.