CHP 13 – D2L Quiz – Mutual Funds; ETFS

Open-end investment companyAnother name for a mutual fund
DistributorSells fund shares, either directly to the public or through certain authorized dealers
Money managerRuns the portfolio and makes the buy and sell decisions
Closed-end investment companies are characterized byAvailability for sale or purchase on security markets
Closed-end investment company that invests in various types of real estate and mortgages is aHybrid real estate investment trust.
Hybrid real estate investment trustClosed-end investment company that invests in various types of real estate and mortgages is a
Exchange traded fundWhich of the following combines the operating characteristics of an open-end fund with some of the trading characteristics of a closed-end fund?
Exchange-traded mutual fundsTraded on listed exchanges
REIT: What type of REIT is most attractive to income oriented investors?Mortgage
No load mutual fund: The maximum sales charge a no load mutual fund can charge0: it’s a no load mutual fund
Back-end load.Redeeming your mutual fund shares might result in a charge called
Back end loaded mutual funds are most appropriate forAn investor with a short time horizon
No-load fund has noAdministrative charges.
12(b)-1 feeMarketing and distribution expenses: An annual fee charged by some mutual funds to cover marketing and distribution expenses is the
Management feeLoad and no-load funds will always charge a
Mutual funds may be bought and sold throughBrokerage firms and fund salespeople
Back-end loadWall Street Journal’s listing of mutual funds, an “r” after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.
Back-end load & 12b-1 feeWall Street Journal’s listing of mutual funds, a “t” after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.
12b-1 fee & Back-end loadWall Street Journal’s listing of mutual funds, a “t” after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.
12b-1 feeWall Street Journal’s listing of mutual funds, a “p” after the mutual fund name and before the NAV means that the particular mutual fund has a ____ associated with it.
Annual Account Maintenance FeeMutual fund fees are paid directly from the investor
NAV of an open-ended mutual fund priced at $10 be if the load is 4%?$9.60
No-load fund: To be a true no-load fund, there can be a maximum ____ load and a maximum ____ 12(b)-1 fee.Maximum 0% load ; a maximum 0.25% 12(b)-1 fee
Investment company earnings come fromInterest, dividends, and capital gains.
Aggressive growthFund: A(n) ____ fund is quite speculative.
SectorFund: A fund that invests only in a particular industry would be a ____ fund.
Municipal bond fundTax-free income: Which of the following bond mutual funds would provide tax-free income?
Socially Responsible Funds typically avoid investing inAlcohol and Tobacco stocks
Index funds have provided competitive rates of return becauseAll of them are true:
a. their costs are lower than other stock funds.
b. it is difficult to outperform the market.
c. they have very low turnover rates.
d. they are tax efficient.
Equity-incomeFund: A(n) ____ fund invests primarily in a portfolio of common stocks for the income they provide.
Balanced FundMutual fund with an objective of both growth and income is a(n)
Growth and income fund.A balanced fund that emphasizes growth in capital is called a(n)
Balanced fund that emphasizes growth in capital is called a(n)Growth and income fund.
Mutual Funds: _____ _______ would not be a reason for purchasing mutual funds.Tax advantage
Mutual Funds: Most mutual funds allow investors to participate inAutomatic reinvestment plans, Automatic investment plans
Automatic reinvestment plans, Automatic investment plansMutual Funds: Most mutual funds allow investors to participate in
Mutual funds: major advantage of mutual funds to the small investor isDiversification
Mutual Funds source of returns include:Dividend income, capital gains, changes in NAV, (but not IDBs)
Guaranteed performance.Mutual funds do not offer
Mutual funds do not offerGuaranteed performance.
Automatic reinvestment planThe ____ is a service offered by mutual funds that helps an investor earn compound interest on their investments.
Systematic withdrawal plansIf you are a mutual fund investor who needs steady income, you might take advantage of a fund’s
Fund familyA group of funds managed by a single company which offers conversion privileges is called a
Future course of the market.Future fund performance is the real key to investment success with mutual funds. One important element to examine when attempting to predict a fund’s future performance is the
Future fund performance is the real key to investment success with mutual funds. One important element to examine when attempting to predict a fund’s future performance is theFuture course of the market.
Value funds look for stocks with relatively all the followingHigh dividend yields, moderate amounts of leverage, undiscovered companies, low P/E ratios
Exchange traded funds advantages over mutual funds include all of the following except:
a. narrow geographic region d. industry focus
b. single foreign countries e. sector focus
c. better diversification
Better diversification
Asset allocation funds invest money inStocks, bonds and real estate