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Exam 15: Investing Through Mutual Funds

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Question 81

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The interest and dividends that a mutual fund earns on its investments are paid out to shareholders as capital gains distributions.

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Question 82

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____ funds invest in high-yield,high-risk corporate bonds.

A) ​World bond
B) ​Junk bond
C) ​Mortgage-backed
D) ​Long-term corporate bond

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Question 83

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A(n) ____ guarantees the owner a fixed or floating interest rate for predetermined period of time with full return of the initial amount invested.

The Securities and Exchange Commission requires specific disclosure of all types of charges on mutual funds.

A money market mutual funds include tax-exempt funds and government securities funds.

A closed-end investment company issues a limited and fixed number of shares and does not buy them back.

A 12b-1 fee is imposed if the investor redeems shares within a specified number of years after purchase.

Current information about mutual funds can be found at (in)

Mutual fund quotations normally include the NAV,YTD Percentage Return,and the fund's expense ratio.

A money market fund will have an income rather than growth objective.

Approximately ____ percent of all households invest in mutual funds.

The best way to ensure that you "beat the market" is to invest in "hot" mutual funds.

No-load funds may have "service fees" of 0.25 percent or less.

Closed-end mutual fund shares are actively traded like common stocks and bonds,primarily on the New York Stock Exchange.

The longer the time period,the greater the negative impact of front-end loads on the total return for the mutual fund investor.

Up-to-date comparative data on mutual funds is readily available on-line.

Common measures of risk for mutual funds include

The typical growth fund seeks short-term capital appreciation.

A trailing commission is compensation paid to salespersons for months or years in the future.

A mutual fund that emphasizes well-balanced return of income and long-term capital gains is a ____ fund.