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1 | |
Which one of the following statements regarding open-end mutual funds is false? |
| | A) | The funds offer investors professional management. |
| | B) | The funds do not offer investors a guaranteed rate of return. |
| | C) | The funds redeem shares at gross asset value. |
| | D) | B and C |
| | E) | A and B |
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2 | |
A mutual funds had average daily assets of $2.0 billion in 2003. The fund sold $500 million worth of stock and purchased $700 million worth of stock during the year. The funds turnover ratio is |
| | A) | 27.5%. |
| | B) | 12%. |
| | C) | 15%. |
| | D) | 25%. |
| | E) | 20%. |
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3 | |
Which of the following functions do mutual fund companies perform for their investors? |
| | A) | Record keeping and administration |
| | B) | Professional management |
| | C) | Diversification and divisibility |
| | D) | Lower transaction costs |
| | E) | All of the above |
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4 | |
Large amounts of money invested in a portfolio that is fixed for the life of the fund are called |
| | A) | closed-end funds. |
| | B) | unit investment trusts. |
| | C) | REITS. |
| | D) | open-end funds. |
| | E) | redeemable trust certificates. |
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5 | |
At issue, offering prices of open-end funds will typically be |
| | A) | less than NAV due to limited demand. |
| | B) | greater than NAV due to greater demand. |
| | C) | less than NAV due to loads and commissions. |
| | D) | NAV or greater due to loads and commissions. |
| | E) | less than or greater than NAV with no apparent pattern. |
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6 | |
Multiple Mutual Fund had year-end assets of $36,670,000 and liabilities of $15,000,000. There were 6,400,000 shares in the fund at year end. What was Multiple Mutual's Net Asset Value? |
| | A) | $3.64 |
| | B) | $4.81 |
| | C) | $6.96 |
| | D) | $3.39 |
| | E) | $2.87 |
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7 | |
Most actively managed mutual funds, when compared to a market index such as the Wilshire 5000, |
| | A) | beat the market return in all years. |
| | B) | beat the market return in most years. |
| | C) | do not outperform the market. |
| | D) | exceed the return on index funds. |
| | E) | None of the above are correct statements. |
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8 | |
As of December 31, 2002, which class of mutual funds had the largest amount of assets invested? |
| | A) | bonds funds |
| | B) | stock funds |
| | C) | mixed asset classes such as asset allocation funds |
| | D) | money market funds |
| | E) | global funds |
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9 | |
Arrangements such as Charles Schwab's "OneSource" program and Fidelity's "FundsNetwork" are examples of |
| | A) | on-line brokerage firms. |
| | B) | electronic trading networks.. |
| | C) | financial supermarkets |
| | D) | integrated investing. |
| | E) | new programs allowed by the SEC but frowned upon by the organized exchanges. |
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10 | |
Couch Potato Furniture purchased 100 shares of Natural Spring mutual fund at a net asset value of $56 per share. During the year Patty received dividend income distributions of $3.00 per share and capital gains distributions of $5.20 per share. At the end of the year the shares had a net asset value of $53 per share. What was Couch Potato's rate of return on this investment? |
| | A) | 5.43% |
| | B) | 9.81% |
| | C) | 7.19% |
| | D) | 12.44% |
| | E) | 9.18% |
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