Questions
1. Explain why mutual funds are attractive to small investors? How can mutual funds generate returns to their shareholders?
2. Why do open end mutual funds differ from closed end funds?
3. Explain the difference between load and no load mutual funds?
4. Like mutual funds commercial banks and stock owned saving institutions sell shares, but the proceeds received by mutual funds are used in different ways. Explain.
5. Support or refute the following statement. Investors can avoid all types of risk by purchasing a mutual fund that contains only treasury bonds?
6. Describe the ideal mutual for investors who wish to generate tax free income and maintain a low degree of interest rate risk.
7. Explain how changing foreign currency values can affect the performance of international mutual funds.