1. The purchase price of a closed-end mutual fund is equivalent to the net asset value of the fund.

   		False
   		True

QUESTION 41

1. A type of fund that invests in real estate and/or mortgages is known as a

   		ETF.
   		sector fund.
   		hedge fund.
   		REIT.

QUESTION 42

1. A fund that is designed to match the performance of a measure such as the S & P 500 or the Russell 2000 is called a(n)

   		sector fund.
   		block fund.
   		index fund.
   		targeted fund.

QUESTION 43

1. Funds that charge higher sales commissions. consistently earn above average rates of return.

   		True
   		False

QUESTION 44

1. One characteristic of most index funds is that such funds typically

   		have a very low-cost structure with respect to management fees and transaction fees.
   		charge high front-end loads.
   		produce a large dollar amount of realized capital gains every year.
   		are designed to "beat the market."

QUESTION 45

1. A call option is the right to

   		borrow stock.
   		sell stock at a specified price.
   		buy stock at a specified price
   		reinvest dividends.