QUESTION 1 B 1. A contingent deferred sales charge is commonly called a ____. | | front-end load | | | back-end load | | | 12b-1 charge | | | top end sales commission |
1 points
QUESTION 2 A 1. __________ fund is defined as one where the fund charges a sales commission to either buy into or exit the fund. | | A load | | | A no-load | | | An index | | | A specialized sector fund |
1 points
QUESTION 3 B 1. Consider a no-load mutual fund with a NAV of $20 at the start of the year and a NAV of $22.727 at the end of the year. During the year investors received income distributions of $2 per share, and capital gains distributions of $0.25 per share. Assuming that the fund carries no liabilities, and that the operating expense ratio is 1%, what is the rate of return of the fund for the year? | | 36.25% | | | 24.90% | | | 23.85% | | | There is not sufficient information to answer this question |
1 points
QUESTION 4 B 1. 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 after operating expenses have already been taken out. | | Class A | | | Class B | | | There is no difference. | | | There is insufficient information given. |
1 points
QUESTION 5 A 1. The top Morningstar mutual fund performance rating is ________. | | five stars | | | four stars | | | three stars | | | two stars |
1 points
QUESTION 6 C 1. Compute the geometric average of the following rates of return: 10%, -20%, -10%, and 20% | | 0% | | | -4.96% | | | -1.26% | | | 0.95% |
1 points
QUESTION 7 A 1. You observe the following stock prices over several years.