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WorksheetsCHAPTER 9 Mutual Fund & Warrant
Total questions: 20
Worksheet time: 3600secs
What type of mutual fund would be most appropriate for a person who wants to invest in a blend of stocks and bonds?
Balanced Fund
Growth Fund
Income Fund
Municipal Bond Fund
Which of the following is NOT the advantages of investing in a Warrant.
Diversified portfolio
Cheaper than ordinary stock
Gives the holder the advantages when the market moves in respect to the holder's expectation
It is tradable
Khun bought "Warrant T" because he expected that economic is going to recover from the recent crisis. "Warrant T" is most probably
Warranty
Call Warrant
Put Warrant
Special Warrant
The investment objective of "Fund X" is to earn a regular income. "Fund X" is most likely a
Money Market Funds
Equity + Bond (Balanced) Funds
Fixed Income Funds
Growth Funds
A fund that pools money together to invest in real estate
REIT
RIET
Syndicate
Which investment might have more hidden costs than others?
stocks
mutual funds
retirement accounts
bonds
Holders of "Fund W" can only sell their units when another holder of the same fund want to buy it. "Fund W" is most probably to be
Mutual Fund
Unit Trust
Open-Ended Fund
Close-Ended Fund
Which of the following is NOT a feature of a warrant?
Strike price
Expiration date
Premium
Exercise ratio
Mutual Funds are advantageous because
They allow individual investors to diversify
They always make money
They don't invest in high risk asset
Only wealthy people can invest in them
Net Asset Value (NAV) is arrived by dividing the difference between asset and liabilities by the number of shares/units held by the investors.
True
False
The objective of Investment Q is to give the holder certain rights and are mostly attached to a mother security. Investment Q is most probably a
Options
Mutual Fund
Warrant
Futures
Select the correct answer.
Why is investing in a mutual fund less risky than investing in a particular company’s stock?
Mutual funds only invest in blue-chip stocks.
Investments in mutual funds are more liquid.
Investments in mutual funds offer a higher rate of return.
Mutual funds hold a diversified portfolio of stocks.
Which item is the best metaphor for a Mutual Fund
A slice of banana
A cut up pie
A justice league
A glass full of milk
What type of mutual fund has a fixed number of shares issued initially?
Open-ended fund
Load fund
No-load fund
Close-ended fund
Put Warrant is considered "out-of-money" when the market price is higher than the strike price.
True
False
