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Revenue sharing with respect to mutual funds refers to _________.


A) fund companies paying brokers if the broker recommends the fund to investors
B) allowing certain classes of investors to engage in market timing
C) charging loads to new investors in a mutual fund
D) directly marketing funds over the Internet

E) A) and C)
F) A) and B)

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The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with a 12b-1 fees of 1% annually.If you plan to sell the fund after 4 years,are Class A or Class B shares the better choice? Assume a 10% annual return net of expenses.


A) Class A
B) Class B
C) There is no difference.
D) There is insufficient information given.

E) A) and D)
F) None of the above

Correct Answer

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Which of the following funds invest in stocks of fast growing companies?


A) Balanced funds
B) Growth equity funds
C) REITs
D) Equity income funds

E) B) and C)
F) A) and D)

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The greatest percentage of mutual fund assets are invested in ________.


A) bond funds
B) equity funds
C) hybrid funds
D) money market funds

E) B) and D)
F) C) and D)

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The average maturity of fund investments in a money market mutual fund is _______.


A) slightly more than one month
B) slightly more than one year
C) about 9 months
D) between 2 and 3 years

E) None of the above
F) B) and C)

Correct Answer

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