4.Which of the following is true regarding equity mutual funds?

1. I) They invest primarily in stock.
2. II) They may hold fixed-income securities, as well as stock.
3. III) Most hold money market securities, as well as stock.
4. IV) Two types of equity funds are income funds and growth funds.

5. A mutual fund had NAV per share of $26.25 on January 1, 2018. On December 31 of the same year, the fund's rate of return for the year was 16.4%. Income distributions were $1.27, and the fund had capital gain distributions of $1.85. Without considering taxes and transactions costs, what ending NAV would you calculate?

a. $27.44

b.$33.88

c.$24.69

d. $42.03

e.$16.62

6. You purchased shares of a mutual fund at a price of $12 per share at the beginning of the year and paid a front-end load of 4.75%. If the securities in which the fund invested increased in value by 9% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would be

a.4.75%

b. 3.54%

c.$2.65%

d.$2.39%