chp 13

the author recommends small investors should stick to . . .
no-loads funds
Redeeming your mutual fund shares might result in a charge called a . . .
back-end loan
an annual fee charged by some mutual funds to cover marketing and distribution expenses is the . . .
12(b)-1 fee
index funds have provided competitive rate of return because . . .
their cost are lower than other stock funds, it is difficult to out perform the market, they have very low turnover rates, and they are tax efficient.
T/F: the most important advantage of a mutual fund is pooled diversification.
T/F: the price investor can sell his shares of an open-end mutual fund share is the net asset value.
T/F: socially responsible funds have experienced lower return than other types of funds of similar risk.
T/F: the major benefit to small investors of mutual funds is diversification.
T/F: for most investors, the best way to deal in foreign securities is through an international mutual fund.
T/F: by definition, all ETF are no-load funds.
a mutual fund allows investors to . . .
become owners of a widely diversified portfolio of securities.
T/F: open-ended mutual funds are guaranteed, they can not lose value.
T/F: spiders and diamonds are examples of ETF’s.
T/F: a funds objective must be stated in its prospectus.
T/F: The price per share of a closed-end investment fund could be lower than its NAV.
T/F: Mutual funds can be classified by the types of securities they purchase.
which of the following bond mutual funds would provide tax-free income?
a) government bond fund
b) mortgage-municipal bond-fund
c) convertible bond fund
d) mortgage-backed bond fund
e) all of the above
mortgage-municipal bond-fund
a _____ is a type of investment that is required by law to pay out nearly all earnings to owners.
real estate investment trust
another name for a mutual fund is . . .
an opetment companyn-end inves
investors tend to use mutual-funds for which of the following reasons?
a) diversification
b) professional management
c) financial returns
d) convenience
e) all of the above
e) all of the above
investment company earnings come from . . .
interest, dividends, and capital gains.
Having money taken automatically from your paycheck and put into a mutual fund is and example of . . .
an automatic investment plan

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