FIN 310 ALL COMPREHENSIVE EXAMS QUESTIONS
AND ANSWERS SURE A+
✔✔Real Estate Investment Trusts (REITs) are best described as? - ✔✔REITs are
similar to a closed-end mutual funds, and invest in real estate or loans secured by real
estate.
✔✔Units sold from a unit investment trust are typically referred to as - ✔✔redeemable
trust certificates
✔✔To form a unit investment trust, a brokerage firm buys a portfolio of securities which
are deposited into a trust. The brokerage firm then sells to the public shares, or "units"
in the trust, called - ✔✔redeemable trust certifacte
✔✔describe an open end fund - ✔✔- The fund's board of directors hires a management
company to manage the portfolio.
- When investors want to "cash out" their shares, they sell them back to the fund at net
asset value.
- Stands ready to redeem or issue shares at their net asset value
✔✔What is the only method for exiting an open-end fund? - ✔✔"cash out"
sell them back to the fund at net asset value
✔✔How are stock funds traditionally classified? - ✔✔by their emphasis on capital
appreciation versus current income
✔✔income funds - ✔✔tend to hold shares with high dividend yields
✔✔growth funds - ✔✔focus on prospects for capital gains
, ✔✔examples of unregulated intermediaries - ✔✔- real estate investment funds
- commingled funds
- hedge funds
✔✔A partnership of investors that pool funds and are not formally organized as
investment companies is called what type of fund? - ✔✔commingled funds
✔✔describe a hedge fund - ✔✔- by design are empowered to invest in a wide range of
investments.
- are vehicles that allow private investors to pool assets to be invested by a fund
manager.
- are typically open only to wealthy or institutional investors.
✔✔what are common money market securities - ✔✔- commercial paper
- treasury bills
- repurchase agreements
✔✔what is true about equity funds - ✔✔- commonly will hold about 5% of total assets in
money market securities.
- invest primarily in stock.
- are typically riskier than income funds
✔✔Bond funds focus on investing in what securities - ✔✔- treasury bonds
- municipal bonds
- mortgage- backed securities
- corporate bonds
✔✔what are common hedge fund types - ✔✔- merger arbitrage
- currency speculation
✔✔describe a money market fund - ✔✔- These funds invest in money market securities
such as commercial paper, repurchase agreements or certificate of deposit.
AND ANSWERS SURE A+
✔✔Real Estate Investment Trusts (REITs) are best described as? - ✔✔REITs are
similar to a closed-end mutual funds, and invest in real estate or loans secured by real
estate.
✔✔Units sold from a unit investment trust are typically referred to as - ✔✔redeemable
trust certificates
✔✔To form a unit investment trust, a brokerage firm buys a portfolio of securities which
are deposited into a trust. The brokerage firm then sells to the public shares, or "units"
in the trust, called - ✔✔redeemable trust certifacte
✔✔describe an open end fund - ✔✔- The fund's board of directors hires a management
company to manage the portfolio.
- When investors want to "cash out" their shares, they sell them back to the fund at net
asset value.
- Stands ready to redeem or issue shares at their net asset value
✔✔What is the only method for exiting an open-end fund? - ✔✔"cash out"
sell them back to the fund at net asset value
✔✔How are stock funds traditionally classified? - ✔✔by their emphasis on capital
appreciation versus current income
✔✔income funds - ✔✔tend to hold shares with high dividend yields
✔✔growth funds - ✔✔focus on prospects for capital gains
, ✔✔examples of unregulated intermediaries - ✔✔- real estate investment funds
- commingled funds
- hedge funds
✔✔A partnership of investors that pool funds and are not formally organized as
investment companies is called what type of fund? - ✔✔commingled funds
✔✔describe a hedge fund - ✔✔- by design are empowered to invest in a wide range of
investments.
- are vehicles that allow private investors to pool assets to be invested by a fund
manager.
- are typically open only to wealthy or institutional investors.
✔✔what are common money market securities - ✔✔- commercial paper
- treasury bills
- repurchase agreements
✔✔what is true about equity funds - ✔✔- commonly will hold about 5% of total assets in
money market securities.
- invest primarily in stock.
- are typically riskier than income funds
✔✔Bond funds focus on investing in what securities - ✔✔- treasury bonds
- municipal bonds
- mortgage- backed securities
- corporate bonds
✔✔what are common hedge fund types - ✔✔- merger arbitrage
- currency speculation
✔✔describe a money market fund - ✔✔- These funds invest in money market securities
such as commercial paper, repurchase agreements or certificate of deposit.
