Exam 4: Mutual Funds and Other Investment Companies

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

The type of mutual fund that primarily engages in market timing is called ________.

Which of the following is not a type of real estate investment trust? I. Equity trust II. Debt trust III. Mortgage trust IV. Unit trust

The SEC requires funds to disclose: I. After-tax returns for the past year II. After-tax returns for the last 5-year period III. The tax impact of portfolio turnover

In the United States in 2017, there were approximately ________ mutual funds offered by fewer than ________ fund complexes.

Sponsors of unit investment trusts earn a profit by ________.

Which of the following funds invest specifically in stocks of fast-growing companies?

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.

The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B shares with a 12b-1 fee of 1% annually. If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice? Assume a 10% annual return net of expenses before the 12b-1 fee is applied.

A ________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds.

Which of the following ETFs tracks the S&P 500 Index?

Advantages of investment companies to investors include all but which one of the following?

Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the net asset value (NAV) of these shares?

Investors who want to liquidate their holdings in a closed-end fund may ________.

You pay $21,600 to the Laramie Fund, which has a NAV of $18 per share at the beginning of the year. The fund deducted a front-end load of 4%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.3% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year?

Which type of investment fund is commonly known to invest in options and futures in large scale?

The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so, the fund buys shares in each S&P 500 company ________.

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

Disadvantages of ETFs include all of the following except

________ fund is defined as one in which the fund charges a sales commission to either buy into or exit from the fund.