Chapter 12 Quiz questions with answers.
_______________ is a market-performance measurement index. Derived from the stock of 500 large
companies on the U.S. market, it is designed to be a leading indicator of U.S. equities and is intended to
reflect the risk/return characteristics of the large-cap companies. ANS -Standard & Poor's 500
________ refers to the operating expenses of the fund divided by the total assets of the fund, expressed
as a percentage. ANS -An expense ratio
What does NAV measure? ANS -The total value of all the assets in the mutual fund minus cost, divided
by the number of shares outstanding
__________________ are share classes that are level-load shares and generally do not have a front-end
load. ANS -Class C
The NAV of an open-end fund is commonly referred to as the _______________ of the mutual fund.
ANS -Share price
A(n) ____________________ is a sales charge that can be charged when investments are made in the
fund or when money is withdrawn from the fund. ANS -Load
Secondarily, mutual funds are categorized into ______ funds ANS -Load and no-load
Which is NOT a major benefit of a mutual fund? ANS -No risk
When are mutual fund purchases and sale orders executed? ANS -At the end of the business day
_______________ is a market-performance measurement index. Derived from the stock of the 2,000
smallest companies on the U.S. market ANS -Russell 2000
A contract(s) in which the seller of a security agrees to buy back the security at a specified time and for a
specified price is called ANS -Repurchase agreements
_______________ is a market-performance measurement index. Derived from the stock of 500 large
companies on the U.S. market, it is designed to be a leading indicator of U.S. equities and is intended to
reflect the risk/return characteristics of the large-cap companies. ANS -Standard & Poor's 500
________ refers to the operating expenses of the fund divided by the total assets of the fund, expressed
as a percentage. ANS -An expense ratio
What does NAV measure? ANS -The total value of all the assets in the mutual fund minus cost, divided
by the number of shares outstanding
__________________ are share classes that are level-load shares and generally do not have a front-end
load. ANS -Class C
The NAV of an open-end fund is commonly referred to as the _______________ of the mutual fund.
ANS -Share price
A(n) ____________________ is a sales charge that can be charged when investments are made in the
fund or when money is withdrawn from the fund. ANS -Load
Secondarily, mutual funds are categorized into ______ funds ANS -Load and no-load
Which is NOT a major benefit of a mutual fund? ANS -No risk
When are mutual fund purchases and sale orders executed? ANS -At the end of the business day
_______________ is a market-performance measurement index. Derived from the stock of the 2,000
smallest companies on the U.S. market ANS -Russell 2000
A contract(s) in which the seller of a security agrees to buy back the security at a specified time and for a
specified price is called ANS -Repurchase agreements
