27)Mutual funds offer all the following EXCEPT

a)diversification

b)professional management

c)guaranteed upside returns

d)ease of purchase/redemption

28)Index mutual funds are becominglesspopular because most actively managed mutual funds, are able to outperformthe underlying indexes against which they are benchmarked and do it more economically (viz. cheaper).

TrueFalse

30)You anticipate from all you have read that interest rates will be moving higher in the upcoming years. The economy is surging, businesses and households are borrowing robustly with interest rates at historical lows. You have a steady job in a career field you like. You are looking at buying a house, a 'forever' home that you anticipate having for a very long time. Under these circumstances would you be likely to consider a fixed-rate or adjustable rate mortgage?

Fixed rateAdjustable rate

40)A discussion of "cost basis" for a stock that you are considering selling is important when you are preparing your income tax returns

TrueFalse

41)Systematicrisks in a discussion of the stock market may not generally be reduced by diversification (namely, owning other competitor company common stock names).

TrueFalse

42)Unsystematicrisks in a discussion of the stock market may not generally be reduced by diversification (namely, owning other competitor company common stock names).

TrueFalse