1. A mutual fund which specializes in investing in stocks of companies who are currently out of favor with investors and, thus, have stocks that are underpriced is called a(n)
a. sector fund.
b. countercyclical fund.
c. value fund.
d. asset allocation fund.
2. You wish to invest $2000 in a load mutual fund that charges an 8 percent front-end load. How much of your money will actually be invested?
a. $2160
b. $2000
c. $1920
d. $1840
3. A mutual fund which purchases stocks to maintain a portfolio that is similar to a group of stocks that are part of a measure of many stocks (such as the Dow Jones Industrial Average) is called a(n)
a. income fund.
b. index fund.
c. growth stock fund.
d. specialty fund.
4. Which of the following terms describes a mutual fund investing tool that permits investors to monitor all of the mutual funds in the market to gauge performance?
a. robo advisor
b. fund screener
c. mutual fund manager
d. profile prospectus
5. Which of the following investment techniques is most directly applied through mutual funds?
a. leverage
b. diversification
c. compounding
d. selling short
6. The last step in the process of selecting a mutual fund in which to invest is to
a. review your investment goals.
b. choose a load or no load fund.
c. screen and compare funds that meet your investment criteria.
d. monitor your mutual fund portfolio.
7. Which of the following types of mutual funds requires payment to purchase a share that is exactly the same as the net asset value?
a. no-load fund
b. load fund
c. low-load fund
d. deferred load fund