1

1. Advantages of mutual funds include

   a.	diversification.
   b.	professional management.
   c.	liquidity.
   d.	All of these.

1 points

QUESTION 2

1. Net asset value increases when

   a.	the value of the underlying securities increases.
   b.	a mutual fund attracts new money from investors.
   c.	All of these.
   d.	gains realized on the underlying securities are paid out to shareholders.

1 points

QUESTION 3

1. Index funds are

   a.	designed to beat the market.
   b.	unmanaged.
   c.	managed.
   d.	focused on the money market.

1 points

QUESTION 4

1. Common measures of risk for mutual funds include

   a.	the fund's Sharpe ratio.
   b.	beta.
   c.	All of these.
   d.	standard deviation.

1 points

QUESTION 5

1. Your first task in selecting a mutual fund is to

   a.	screen and compare funds that meet your investment criteria.
   b.	locate sources of comparative performance data.
   c.	eliminate funds inappropriate for your investment goals.
   d.	review your investment policy.

1 points

QUESTION 6

1. Current information about mutual funds can be found at (in)

   a.	BusinessWeek.
   b.	The Value Line Mutual Fund Survey.
   c.	All of these.
   d.	CNNMoney.com.

1 points

QUESTION 7

1. Compute the net asset value for a share of a mutual fund with the following characteristics:

   Market value of assets:	$177,000,000
   Market value of liabilities:	$12,000,000
   Number of shares outstanding:	7,250,000

   a.	$22.76
   b.	$26.07
   c.	$23.66
   d.	$24.41

1 points

QUESTION 8

1. A mutual fund that does not assess a sales charge at the time of the investment purchase is called a ____ fund.

   a.	front-end load
   b.	low-load
   c.	back-end load
   d.	no-load

1 points

QUESTION 9

1. The price of a mutual fund share excluding any transaction cost is its

   a.	exchange rate.
   b.	expense ratio.
   c.	net asset value.
   d.	net income.

1 points

QUESTION 10

1. Mutual funds that charge a load do so to compensate

   a.	shareholders.
   b.	fund managers.
   c.	the SEC.
   d.	Brokers and salespeople.

Need at least 8 of 10 correct to mark answer Helpful. Thanks!