【正文】 Chapter 04Mutual Funds and Other Investment CompaniesMultiple Choice Questions1.Which one of the following statements regarding openend mutual funds is false?A.The funds redeem shares at net asset value.B.The funds offer investors professional management.C.The funds offer investors a guaranteed rate of return.D.The funds offer investors professional management and a guaranteed rate of return.E.The funds redeem shares at net asset value and offer investors professional management.2.Which one of the following statements regarding closedend mutual funds is false?A.The funds always trade at a discount from NAV.B.The funds redeem shares at their net asset value.C.The funds offer investors professional management.D.The funds always trade at a discount from NAV and redeem shares at their net asset value.E.None of the options3.Which of the following functions do investment panies perform for their investors?A.Record keeping and administrationB.Diversification and divisibilityC.Professional managementD.Lower transaction costsE.All of the options4.Multiple Mutual Funds had yearend assets of $457,000,000 and liabilities of $17,000,000. There were 24,300,000 shares in the fund at yearend. What was Multiple Mutual39。s net asset value?A.$B.$C.$D.$E.$5.Growth Fund had yearend assets of $862,000,000 and liabilities of $12,000,000. There were 32,675,254 shares in the fund at yearend. What was Growth Fund39。s net asset value?A.$B.$C.$D.$E.$6.Diversified Portfolios had yearend assets of $279,000,000 and liabilities of $43,000,000. If Diversified39。s NAV was $, how many shares must have been held in the fund?A.43,000,000B.6,488,372C.5,601,709D.1,182,2037.Pinnacle Fund had yearend assets of $825,000,000 and liabilities of $25,000,000. If Pinnacle39。s NAV was $, how many shares must have been held in the fund?A.21,619,B.22,930,C.24,860,D.25,693,8.Most actively managed mutual funds, when pared to a market index such as the Wilshire 5000,A.beat the market return in all years.B.beat the market return in most years.C.exceed the return on index funds.D.do not outperform the market.9.Pools of money invested in a portfolio that is fixed for the life of the fund are calledA.closedend funds.B.openend funds.C.unit investment trusts.D.REITS.E.redeemable trust certificates.10.Investors in closedend funds who wish to liquidate their positions mustA.sell their shares through a broker.B.sell their shares to the issuer at a discount to net asset value.C.sell their shares to the issuer at a premium to net asset value.D.sell their shares to the issuer for net asset value.E.hold their shares to maturity.11.Closed end funds are frequently issued at a ______ to NAV and subsequently trade at a __________ to NAV.A.discount, discountB.discount, premiumC.premium, premiumD.premium, discountE.No consistent relationship has been observed.12.At issue, offering prices of openend funds will often beA.less than NAV due to loads and missions.B.greater than NAV due to loads and missions.C.less than NAV due to limited demand.D.greater than NAV due to excess demand.E.less than or greater than NAV with no apparent pattern.13.Which of the following statements about real estate investment trusts is true?A.REITs invest in real estate or loans secured by real estate.B.REITs raise capital by borrowing from banks and issuing mortgages.C.REITs are similar to openend funds, with shares redeemable at NAV.D.REITs invest in real estate or loans secured by real estate and raise capital by borrowing from banks and issuing mortgages.E.All of the options are true.14.Which of the following statements about real estate investment trusts is true?A.REITs may be equity trusts or mortgage trusts.B.REITs are usually highly leveraged.C.REITs are similar to closedend funds.D.REITs may be equity trusts or mortgage trusts and are usually highly leveraged.E.All of the options are true.15.Which of the following statements about money market mutual funds is true?A.They invest in mercial paper, CDs, and repurchase agreements.B.They usually offer checkwriting privileges.C.They are highly leveraged and risky.D.They invest in mercial paper, CDs, and repurchase agreements, and they usually offer checkwriting privileges.E.All of the options are true.16.In 2012 the proportion of mutual funds (based on total assets) specializing in mon stocks wasA.%.B.%.C.%.D.%.E.%.17.In 2012 the proportion of mutual funds (based on total assets) specializing in bonds wasA.%.B.%.C.%.D.%.E.%.18.In 2012 the proportion of mutual funds (based on total assets) specializing in money market securities wasA.%.B.%.C.%.D.%.E.%.19.In 2012 the proportion of hybrid (bond and stock) mutual funds (based on total assets) wasA.%.B.%.C.%.D.%.E.%.20.Management fees and other expenses of mutual funds may includeA.frontend loads.B.backend loads.C.12b1 charges.D.frontend and backend loads.E.frontend loads, backend loads, and 12b1 charges.21.The Profitability Fund had NAV per share of $ on January 1, 2012. On Decem