Question 1 of 20
A mutual fund in which shares are issued only when the fund is organized is called a(n) __________ fund.
A. closed-end B. open-end C. load D. no-load
Question 2 of 20
The Capitalist Mutual Fund's portfolio is valued at $45 million. The fund has liabilities of $3 million, and the investment company sponsoring the fund has issued 1,600,000 shares. What is the fund's net asset value?
A. $100 B. $26.25 C. $52.50 D. $3.75
Question 3 of 20
The commission charge for purchasing shares of a load fund that imposes an up-front commission charge is __________ percent.
A. 1 to 2 B. 2 to 4 C. 5 to 6 1/2 D. as high as 8 1/2
Question 4 of 20
A mutual fund in which no sales charge is paid by the individual investor is called a(n) __________ fund.
A. closed-end B. open-end C. load D. no-load
Question 5 of 20
The average management fee for all mutual funds is:
A. less than 0.25%. B. 0.25% to 0.50%.
C. 0.50 to 1.25%. D. 1.25 to 2.50%.
Question 6 of 20
A fee that some investment companies charge for marketing and distributing a mutual fund is called a:
A. 14A-1 fee. B. 12b-1 fee. C. 18-2 fee. D. 21-AB fee.
Question 7 of 20
All the different management fees and fund's operating costs are often referred to as a(n):
A. investment ratio. B. expense ratio.C. financial ratio.D. management ratio.
Question 8 of 20
Which of the following statements is FALSE?
A. Individual investors should be involved in choosing a mutual fund because they know how the objectives of a mutual fund match their own investment objectives.
B. Professional fund managers do make mistakes.
C. Although investing in mutual funds provides professional management, individual investors should continually evaluate their mutual fund investments.
D. There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds.
Question 9 of 20
The typical expense ratio for an index fund is:
A. 0.50% or less.B. between 0.50 and 1%.
C. between 1 and 2%.D. between 2 and 3%.
Question 10 of 20
The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a:
A. regular account transaction. B. voluntary savings plan.
C. contractual savings plan. D. minimum withdrawal plan.
Question 11 of 20
Sharon Tate has a mutual fund and she has all dividend income and capital gains income used to purchase additional shares in her mutual fund. Which of the following plans is she using?
A. A regular account transaction B. A voluntary savings plan
C. A contractual savings plan D. A reinvestment plan
Question 12 of 20
An example of a direct real estate investment is a:
A. real estate dwelling.B. real estate syndicate.
C. real estate investment trust.D. mortgage pool.
Question 13 of 20
If you want a risk-proof real estate investment, invest in:
A. real estate investment trusts. B. real estate limited partnerships.
C. participation certificates (PCs). D. real estate syndicates.
Question 14 of 20
An example of an indirect real estate investment is:
A. a single-family home. B. a duplex.
C. a real estate investment trust (REIT).D. land.
Question 15 of 20
One of the advantages of being a limited partner in a real estate investment venture is that you have __________ liability.
A. no financial B. unlimited financial
C. limited financial D. implied
Question 16 of 20
Illiquidity in real estate means that:
A. you can quickly sell the property.
B. you don't have a water well on the property.
C. you cannot quickly sell the property.
D. you don't have financial leverage.
Question 17 of 20
For residential real estate investments, the depreciation period now is __________ years.
A. 7 1/2 B. 17 1/2 C. 20 1/2 D. 27 1/2
Question 18 of 20
You can avoid storage and assaying problems by investing in:
A. gold wafers. B. gold bars. C. gold bullion.D. gold bullion coins.
Question 19 of 20
Owen Cartwright has joined a real estate syndicate that bought an office building in downtown Orlando, Florida. What type of investment does he hold?
A. Direct investment in real estate
B. Indirect investment in real estate
C. Investment in precious metals
D. Investment in collectibles
Question 20 of 20
XXXXX XXXXX has a baseball card collection passed down to him from his grandfather. He is particularly proud of the signed Hank Aaron baseball card that he has. What type of investment does he hold?
A. Direct investment in real estate B. Indirect investment in real estate
C. Investment in precious metals D. Investment in collectibles