'Since they engage in less trading than most other mutual funds, they generate a limited amount of capital gains that must be distributed to shareholders. This statement refers to which of the following types of funds? OA. Index funds OB. Growth funds OC. Bond funds OD. Dividend funds ***
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- A mutual fund that invest in a mix of equity and fixed income securities that provide current cash flow is a(n)The liability / equity side of an open-ended hedge fund is composed of __________________. A. units and margin loans B. units only C. the financial instruments described in the deeds D. Investment properties E. marketable sharesA money market mutual fund or fund pools money exchange-traded from investors and purchases various money market instruments using those funds. Which of the following would be an appropriate instrument for such a fund that would offer the lowest risk for investors? O A. Preferred stock B. T-notes O C. Common stock D. High-yield bonds
- Advantages of investing in mutual funds compared to individual securities include all of the following EXCEPT: Group of answer choices -Increased diversification. -Difficulty of comparison -Professional management -Government oversight. -Service and convenience.Investors pay load charges to receive: a. higher returns on their investments. b. additional services from funds. c. voting shares of stock. d. advice on which fund to buy. e. 12b-1 remunerations.Which of the following statements regarding close-end investment companies, if any, is correct?1. Close-end funds continually create new shares as new monies are obtained.2. Close-end funds offer price guarantees a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.
- Which of the following is likely to have a price that differs from its NAV?: -open-ended mutual funds -close-ended mutual funds -exchange traded funds -actively managed funds -index fundsHistorically, index funds have had _________ thanmost actively managed mutual funds.a. higher feesb. less diversificationc. larger tax burdensd. better returnsThe following are examples of mutual fund companies: O a. bond funds. O b. buyout-oriented private equity. O c. private equity. O d. hedge funds. e. venture capital.
- Which mutual fund tends to be invested in companies with relatively low P/E ratios and good growth potential to its peers? A : Growth and income fund B : Value fund C : Growth fund D : Balanced fundA fee charged by some mutual funds to new investors is the: Group of answer choices -management fee. -front-end load. -low-load fee. -back-end load. -transaction fee.A more actively managed mutual fund will generally have a expense ratio than a fund that is active. O higher; more O lower; less O higher; less O lower; not