Mr. Gates is a gadget geek. He loves reading about new hi-tech companies and their innovative technologies. He recently inherited $80,000 from his great uncle, and wants to invest it in a wide range of technology companies. He doesnt need the money now, hes comfortable with volatility, and he wants to invest it in what hes passionate about.

1. Mr. Gates is considering buying a mutual fund. What is a mutual fund?

A. A large account where investors pool their money and mutually agree what stocks, bonds, or other securities to purchase.

B. A professionally managed account where investors pool their money, which is then used to purchase stocks, bonds, or other securities.

C. A collection of specific stocks that always move proportionally to the market. If one goes up, the rest go up too, and vice versa.

D. A collection of bonds issued by the same entity. For example, all bonds issued by company X are a mutual fund.

2. What benefits would Mr. Gates receive by investing in a technology fund instead of choosing individual technology stocks in which to invest?

A. The mutual fund is run by professional managers who deal with all the time-consuming, day-to-day research, operations, and trading.

B. The mutual fund will outperform the stocks that he would choose since the managers are professional investors.

C. Investing in mutual funds broadly diversifies investor assets, so even aggressive sectors like technology are considered safe.

D. In a mutual fund, Mr. Gates can choose exactly which companies stocks the fund should buy since he has an equal vote with the other fund investors.

3. Mr. Gatess mother is a nervous investor. Which of the following is the most reasonable type of fund for her to invest in?

A. Balanced fund

B. Commodities fund

C. Bond fund

D. Aggressive growth fund

4. What is a no-load fund?

A. No-load funds are not required to register with the securities regulators and are not burdened by the same regulations as load funds, which are loaded down by regulation.

B. No-load mutual funds are structured as not-for-profit entities which means that all fees and sales charges are reinvested in the fund for the benefit of the fund investors.

C. No-load the investor doesnt need to pay an entrance or exit fee when trading the fund. Instead, the management fees are taken from the funds asset base.

D. No-load the fund doesnt charge any fees. This is a big benefit since the money the investor would have paid in fees is invested into the securities the fund purchases.

I understand that we are not allowed to post multiple questions but I am really struggling and I need help.