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Mutual Funds Answers

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Which of the following describes how to calculate the total investment in a load fund?

A
Multiply the number of shares by the net asset value.
B
Multiply the number of shares by the offer price.
C
Subtract the net asset value from the offer price.
D
Subtract the proceeds from the investments.
42
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Use the information in the table below to answer the following question.Name of FundNAVOffer PriceUpton Group$18.47$18.96Green Energy$17.29$18.01TJH Small-Cap$18.43$19.05WHI Health$20.96NLTrevor buys 80 shares of Upton Group and 70 shares of TJH Small-Cap. What is Trevor’s total investment?

A
$2,687.90
B
$2,768.00
C
$2,850.30
D
$2,957.60
43

Rauol made an investment in 155 shares of stock in a load fund for $3,117.05. After one year the stock had a net asset value of $18.35 per share. If Rauol redeems all 155 shares, which of the following is a correct statement?

A
Rauol will have a loss of $272.80.
B
Rauol will have a profit of $272.80.
C
Rauol will have a profit of $2,844.25.
D
There is not enough information to calculate profit or loss.
44

Which of the following statements is true?

A
Bonds have more risk than stocks, but offer more return.
B
Stocks have more risk than bonds, but offer more return.
C
Stocks tend to offer a greater risk, while bonds tend to offer a greater return.
D
Bonds tend to offer a greater risk, while bonds tend to offer a greater return.
45

Impasto is ______________

A
thickly applied paint that lets us see brushstrokes.
B
the degree to which the surface of an object seems to have a particular feel.
C
the light, color, and shade of an object.
D
any graduation of light and shadow that produces a hazy effect.
46

Which of the following expressions is equal to the total proceeds of a mutual fund?

A
net assets times number of shares
B
net asset value times number of shares
C
offer price times number of shares
D
profit minus investment
47

What does it mean that stocks and bonds are relatively liquid?

A
They are easier to buy and sell than other forms of investment.
B
They tend to go up and down in value.
C
The amount of income they can bring changes frequently.
D
There are more of them to choose from than other forms of investment.
48

The degree to which the surface of an object seems to have a particular feel is referred to as an object’s _____________.

A
tone
B
depth
C
tactility
D
texture
49

A certain mutual fund has net assets of $1,359,600. One share of this fund has a net asset value of $11.33. How many shares make up the fund?

A
833
B
120,000
C
1,359,600
D
15,404,268
50

What is risk, as pertains to investing?

A
The time period needed to find a buyer for an investment.
B
The cost of purchasing an investment.
C
The chance you take that your investments will lose their value.
D
The opportunity cost of tying your money up in investments.
51

Use the information in the table below to answer the following question.Name of FundNAVOffer PriceUpton Group$18.47$18.96Green Energy$17.29$18.01TJH Small-Cap$18.43$19.05WHI Health$20.96NLFor which of the funds shown would you pay the most commission on the purchase of 100 shares?

A
Green Energy
B
TJH Small-Cap
C
Upton Group
D
WHI Health
52

Which of the following describes how to calculate the total investment in a load fund?

A
Multiply the number of shares by the net asset value.
B
Multiply the number of shares by the offer price.
C
Subtract the net asset value from the offer price.
D
Subtract the proceeds from the investments.

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