FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Investing in Mutual Funds

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

The only way to get reliable information about mutual funds is to pay a fee for it.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

The majority of all mutual funds are closed-end funds offered by investment companies.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

The expense ratio is the amount that investors pay for all of a mutual fund's management fees and operating costs.

Shelby purchased 100 shares of ABCD Growth fund and had income dividends of $15, capital gain distributions of $35, and a capital gain of $120 in the year she sold her shares, which resulted in a total dollar return of $170.

Brenda wants to invest in a fund that will outperform most others over many years. On average, she would be better off to invest in an index fund instead of a managed closed-end fund.

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase. If she must pay a 5% contingent deferred sales fee, what will her total fee be?

If you start a new job and are offered the opportunity to participate in the company's 401(k) or 403(b) retirement plan, which of the following decisions can affect your financial future?

Cynthia received an IRS Form 1099DIV. This form is sent at the end of each quarter to specify how much she received in income dividends and capital gain distributions.

Time is an important factor when evaluating a managed mutual fund for which of the following?

If Ryan wants to invest in an index mutual fund, he should not expect his fund to behave differently than the underlying index.

Over many years, the majority of managed mutual funds outperform the Standard & Poor's 500 stock index.

Which of the following types of stock funds invests in stock issued by companies expecting higher-than-average revenue and earnings growth?

An exchange-traded fund is actively managed by professional fund managers and shares are traded on the floors of stock exchanges.

A socially responsible fund invests in companies that produce tobacco, nuclear energy, and weapons in order to influence the boards to change the companies' mission statements.

Melinda wants to withdraw some money from her mutual fund. She has a minimum asset value of $10,000. Which of the following is not an option available for her to systematically withdraw some money?

Mutual funds provide amateur management.

Which class of shares charges a commission (sales charge) when shares are purchased?

Which of the following types of stock funds invests in stock issued by companies throughout the world outside the United States?

An "A fund" is a mutual fund in which investors may pay a commission as high as 9.5% of the purchase price for investments.

An aggressive growth fund invests in companies with a long history of paying dividends.