Mutual funds that seek to invest in undiscovered companies or in companies that are currently undervalued by the market but which offer the potential for future growth are called value funds. True False Question 5 (1 point) Characteristics of small-cap stocks typically include a total market value of $2 billion or less. the potential for high growth and above average rates of return. greater risk and price volatility than that of larger-cap stocks. price-earning ratio of less than 15 Question 6 (1 point) Which is true of exchange-traded funds (ETFs)? They are closed-end funds. The distributor cannot create new shares or redeem old shares. You can trade on an intraday basis. Only a few of the major U.S. Indexes have their own ETFs