1. Which statement is most correct?
New regulations concerning auto emissions would be an example of systematic risk.
The less the variability of return, the greater the risk.
Bond prices and interest rates are inversely related.
2. Which of the following is incorrect?
Total return for a mutual fund includes capital gains less any reinvested dividends.
An investor who buys shares in a closed-end fund for less than the fund’s net asset value is said to be buying shares at a discount.
Morningstar ranks mutual funds based on their performance relative to comparable funds.