Laura Larkin invested $4,000 in a mutual fund with a stated load of 6 percent. How much of her money was actually invested in shares of the mutual fund?

	A.	$3,670
	B.	$4,000
	C.	$3,940
	D.	$3,760

Question 2

Which is not a typical investment found in a bond fund?

	A.	High-dividend-paying stocks
	B.	Corporate bonds
	C.	Aggressive-growth stocks
	D.	Preferred stock

Question 3

Mutual funds that invest in lesser-known companies with a market capitalization of $2-$10 billion are called ____ funds.

	A.	mid-cap
	B.	large-cap
	C.	microcap
	D.	small-cap

Question 3

Mutual funds that invest in lesser-known companies with a market capitalization of $2-$10 billion are called ____ funds.

	A.	mid-cap
	B.	large-cap
	C.	microcap
	D.	small-cap

Question 5

A group of mutual funds managed by the same investment company is called a

	A.	sector fund.
	B.	mutual fund group.
	C.	unit investment trust.
	D.	mutual fund family.

Question 6

A REIT is a type of closed-end mutual fund that focuses on

	A.	regular earnings.
	B.	rollover equities.
	C.	real estate.
	D.	high real returns on investment for shareholders.

Question 7

Index funds are

	A.	focused on the money market.
	B.	designed to beat the market.
	C.	unmanaged.
	D.	managed.

Question 8

Mutual fund investors must pay federal income taxes on

	A.	ordinary income dividend distributions.
	B.	capital gains from selling their shares.
	C.	all of these.
	D.	capital gains distributions.

Question 9

The new 12b-2 fee being phased in by 2017 to replace the 12b-1 fee is essentially a.

	A.	marketing and service fee.
	B.	trailing commission.
	C.	redemption fee.
	D.	front-end load.

Question 10

Redemption fees typically

	A.	are assessed on shares sold back within the first five years.
	B.	are designed to discourage frequent trading.
	C.	represent 3 percent of the shares redeemed.
	D.	are particularly troublesome for long-term investors.