Mutual Fund Concepts
Take this test on mutual funds concepts to assess your knowledge about mutual funds.
A diversified equity fund is one which
Invests in one sector
Invests in one theme
Invests in minimum 30 stocks
Invests in stocks across various sectors
The term, EXCESS, returns is commonly defined as
total portfolio returns minus the market rate.
total portfolio returns minus the risk-free rate.
(portfolio returns minus the risk-free rate)/beta.
none of the above.
Which portfolio of mutual funds would be most appropriate for an aggressive investor?
One divided equally among large company, small company, and international stocks.
One with 40 % invested in 3-5 year CDs, 30% in large company growth stocks, and 30% in 10-20 year U.S. Treasury strips.
One equally weighted among small company stocks and high quality corporate bonds.
offer considerable safety but pay rather meager dividends.
Which type of fund is most likely to have the lowest management fee?
Equity growth fund.
Equity income fund.
Closed-end funds have lower cash requirements than open-end funds because:
open-end funds pay more taxes than closed-end funds.
open-end funds allow investors to redeem their shares at any time.
closed-end funds have limited lifetimes.
open-end funds tend to invest in less liquid assets.
The least risk exposure would be appropriate for a mutual fund which
is oriented toward capital gains for wealthy investors.
is designed for young, upwardly mobile professionals.
generates income for investors living on a fixed income.
none of the above.
A major difference between load and no-load funds is
marketability: no-load funds can be traded more readily.
acquisition cost: load funds cost more than their NAVs.
performance: load funds do better.
fund: open ended.
If you would like to invest in the software industry, you should look for
an index fund.
a sector fund.
a balanced fund.
Which type of fund invests in debt securities with very short maturities?
Money market mutual fund.
You are evaluating a fund. What activity would you typically not undertake in this effort?
Calculate the fund's NAV.
Calculate or find the fund's rate of return.
Review the fund's turnover ratio
Administrative expenses-to-assets ratio.
Page 1 of 1
This content is neither created nor endorsed by Google.
Terms of Service