1.

The portfolio of a growth and income fund is likely to contain

A.

stocks of recently listed companies with rapid growth in revenues.

B.

a high percentage of preferred stocks and bonds selling at a discount.

C.

an equal mix of stocks and fixed income securities.

D.

a high percentage of stocks in established companies and a small amount of fixed income securities.

2.

Returns on exchange traded funds may come from

I. capital gains.

II. dividends.

III. increases in the fund's premium.

IV. decreases in the fund's discount.

A.

I and II only

B.

III and IV only

C.

I, II and III only

D.

I, II, III and IV

3.

Like

closedend

funds, ETFs can sell at a premium or discount to their net asset values.

True

False

5.

Which combination of funds is most suitable for an investor seeking to diversify across asset classes?

A.

An S&P 500 Index Fund, an intermediate term bond fund, a REIT.

B.

A balanced fund, an S&P 500 index fund, an intermediate term bond fund.

C.

An energy fund, a pharmaceuticals fund, a financial services fund.

D.A growth and income fund, a large cap equity fund,

DowJones

Industrial Average Index Fund.