Mutual Funds

A pooled portfolio of different investments owned by multiple investors, managed by professionals, and subject to laws and regulations designed to protect individual investors.

• Stock Exchange

• Bond Market

• Mutual Fund

• Real Estate

A mutual fund that contains stocks to mirror a stock market index

• Equity Growth Fund

• Equity Value Fund

• Index Fund

• Aggressive Equity Fund

Index funds are _____ managed and therefore have ______ transaction costs

• actively; more

• actively; fewer

• passively; more

• passively; fewer

Which of these stock mutual funds contains companies from small and medium sized companies expected to experience rapid growth?

• Aggressive Equity Fund

• Equity Growth Fund

• Equity Value Fund

• S&P 500 Index Fund

Which of the following Bond Mutual Funds has greater risk?

• U.S. Government Fund

• Fixed Income Fund

• High Yield Fund

• International Fixed Income Fund

International, European, & Asian Pacific Equity Funds are managed according to a ____ or ____ style

• aggressive; fixed income

• value; growth

• passive; index

• active; mutual

Mutual Fund Shares contain only a small fraction of each stock or bond in the mutual fund.

• True

• False

Net Asset Value

• A fee charged when you invest in a mutual fund

• The price at which you can buy or sell one share of the mutual fund

• a number of different mutual funds that are all run by professionals associated with a specific company

• The mutual fund's gains and losses over the past year.

Contains bonds issued by foreign governments and companies

• International Fixed Income Fund

• U.S. Government Fund

• High Yield Fund

• Fixed Income Fund

A way to divide investments to minimize risk and maximize returns

• Portfolio Juggling

• Bond Division

• Stock Split

• Asset Allocation