55) Which of the following is a source of detailed information for fund investments?

A) Internet B) Professional advisory services C) The fund's annual report and prospectus

D) Financial publications

E) All of these

51) Which of the following seeks high total return by maintaining precise amounts within each of the various types of asset that the fund invests in? A) Funds of fund B) Family of funds

C) Fixed-income securities

D) Money market instruments

E) Asset allocation fund

48) Which of the following is an example of an exchange-traded fund (commonly referred to as ETF) that is available to track an index? A) Midcap stocks B) Small-cap stocks

C) Fixed-income securities

D) Commodities E) All of these are correct

45) Contingent deferred sales loads generally: A) apply until the shares you own are in the fund for 10 years or more. B) apply regardless of how long your shares have been invested. C) increase as the length of time you have been in the fund increases. D) decline gradually until there is no withdrawal fee if you own the shares for more than five years. E) apply only for the first year funds are invested.

44) A closed-end fund is: A) a fund that generally invests only in the stocks or other securities contained in a specific stock or securities index. B) has only a certain number of shares available to investors when the fund is organized. C) professionally managed so investors need not monitor the performance of the fund. D) a fund whose shares are issued and redeemed by the investment company at the request of investors. E) one whose shares trade only at end-of-the-day prices.

43) A mutual fund: A) is a way of investing in a single stock. B) offers safety through diversification because a loss in one investment is usually offset by gains in other investments within the fund. C) is insured by the FDIC. D) is not an investment that is increasing in popularity. E) is professionally managed so investors need not monitor fund results.

42) The turnover ratio of a mutual fund measures the: A) length of time a manager has been in charge of the fund. B) amount of profit the fund earns from one investment period to the next. C) number of months the average investor holds the fund before selling. D) percentage of a fund's holdings that have changed or "been replaced" during a 12-month period. E) percentage of institutional investors who own the fund.

37) Which of the following would be found in a mutual fund's prospectus?

A) Statement describing the risk factors associated with the fund B) Description of the fund's past performance C) Information about the fund's management

D) The process for buying and selling shares in the fund

E) All of these would be found in a prospectus.

29) Which of the following is an advantage of an exchange-traded fund? A) No minimum investment amount B) Buy and sell shares through a securities exchange at any time during the business day

C) Lower management fees than closed-end or open-end funds D) Using limit orders to both buy and sell E) All of these are advantages of ETFs.

26) Many investors will access a fund's ________ by using the internet. It includes a letter from the fund's independent auditors that provides an opinion as to the accuracy of the fund's financial statements. A) annual report

B) 12b C) annual prospectus D) annual summary report from the president of the investment company E) copy of the annual mutual funds report containing a summary of the professional advisory services comments

14) Another name for a mutual fund that doesn't levy a sales charge, but does charge an ongoing higher 12b-1 fee is a class ________ fund. A) A B) B

C) C

D) D

E) E

8) Bob Newsome purchased 250 shares of the Northern Lights Growth Fund. The purchase cost was $20 per share and the total commission was $250. What is the load being charged by the fund? A) 8.5 percent

B) 5 percent

C) 4.5 percent

D) 3 percent

E) 2.5 percent

5) For most mutual funds, the net asset value is calculated at the close of trading each:

A) year. B) quarter. C) week.

D) day.

E) hour.