Personal Finance Pt. 2 (Exam 3) – Flashcards
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A mutual fund in which shares are issued only when the fund is organized is called a(n) __________ fund.
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closed-end
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The typical expense ratio for an index fund is:
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0.50% or less.
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The commission charge for purchasing shares of a load fund that imposes an up-front commission charge is __________ percent.
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as high as 8 1/2
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Owen Cartwright has joined a real estate syndicate that bought an office building in downtown Orlando, Florida. What type of investment does he hold?
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Indirect investment in real estate
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You can avoid storage and assaying problems by investing in:
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gold bullion coins.
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Brian Wilson has a baseball card collection passed down to him from his grandfather. He is particularly proud of the signed Hank Aaron baseball card that he has. What type of investment does he hold?
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Investment in collectibles
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The Capitalist Mutual Fund's portfolio is valued at $45 million. The fund has liabilities of $3 million, and the investment company sponsoring the fund has issued 1,600,000 shares. What is the fund's net asset value?
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$26.25
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If you want a risk-proof real estate investment, invest in:
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participation certificates (PCs).
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Illiquidity in real estate means that:
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you cannot quickly sell the property.
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One of the advantages of being a limited partner in a real estate investment venture is that you have __________ liability.
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limited financial
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Which of the following statements is FALSE?
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There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds.
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A fee that some investment companies charge for marketing and distributing a mutual fund is called a:
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12b-1 fee.
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An example of a direct real estate investment is a:
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real estate dwelling.
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A mutual fund in which no sales charge is paid by the individual investor is called a(n) __________ fund.
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no-load
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All the different management fees and fund's operating costs are often referred to as a(n):
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expense ratio.
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Sharon Tate has a mutual fund and she has all dividend income and capital gains income used to purchase additional shares in her mutual fund. Which of the following plans is she using?
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A reinvestment plan
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The average management fee for all mutual funds is:
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0.50 to 1.25%.
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An example of an indirect real estate investment is:
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a real estate investment trust (REIT)
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For residential real estate investments, the depreciation period now is __________ years.
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27 1/2
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The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a:
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regular account transaction.
