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Mutual Funds

Total questions: 15

Worksheet time: 5mins

Name
Class
Date
1.

These are professionally managed investment products that pool together the assets of various investors.

a)

Mutual Funds

b)

Stocks

c)

Stocks Exchange

d)

Bonds

2.

The prices at which shares are bought by the investors is expressed as

a)

Market Price per Share

b)

Par Value Per Share

c)

Book Value per Share

d)

Net Assets Value per Share

3.

Mutual Funds are regulated by

a)

Central Bank of the Philippines (BSP)

b)

Insurance Commission (IC)

c)

Securities and Exchange Commission (SEC)

d)

Bureau of Treasury (BoTR)

4.

How do I earn from Stocks/ Bond Investments?

a)

Price Appreciation

b)

Dividends

c)

Interest

d)

All of the above

5.

This is for investors who are looking for alternative investment options which could offer better returns than a bank savings account.

a)

Money Market Funds

b)

Bond Funds

c)

Balanced Funds

d)

Stock Funds

6.

Which of the following asset allocation/ portfolio reflects that of the bond fund?

a)
b)
c)
d)
7.

Mr. B just had his first born a week ago. As a responsible dad, he is looking towards investing for his son's education in 18 years, and considering a mix of growth and 'safe' funds. Looking at this time horizon, what is perfect for his investment plan?

a)

Money Market Funds

b)

Bond Funds

c)

Balanced Funds

d)

Stock Fundsj

8.

Index funds though invested in the stocks are considered passively managed because they are merely invested in the stocks compromising the particular index that they are trying to mirror. Which of the following refers to investment to index funds?

a)

The Fund takes part in the success stories of the industry captains and invests in the country’s largest conglomerates.

b)

The Fund tracks the performance of the benchmark PSEi, mainly by investing in listed equities that are a part of the PSEi, in such proportion that the performance of the Fund will match that of the PSEi.

c)

The Fund is designed to generate long-term capital appreciation by investing in high quality equities diversified across sectors.

d)

The fund aims to generate long-term capital appreciation through investment in high-quality equity securities diversified across sectors and issue sizes to provide moderate portfolio volatility

9.

It is a fee paid by an investor to the portfolio management company as compensation for managing funds on their behalf.

a)

Redemption Fee

b)

Management Fee

c)

Administrative Fee

d)

Operating Fee

10.

it is a measure used in fundamental analysis to determine the volatility of an asset or portfolio in relation to the overall market.

a)

Alpha

b)

Beta

c)

Sharpe

d)

Price-Earnings Ratio

11.

The higher the standard deviation of the investment, the better.

a)

TRUE

b)

FALSE

12.

The art of selecting the right investment policy for individuals/ companies to minimize risk and maximize returns is called __.

a)

Financial Management

b)

Financial Planning

c)

Portfolio Management

d)

Portfolio Diversification

13.

If investors believe that a company will grow in the coming years and the intrinsic value of a stock will go up, they will invest in such companies to build their corpus value.

a)

Growth Investing

b)

Value Investing

c)

Intrinsic Investing

d)

Index Investing

14.

Over time, the average cost of your shares will usually be lower than the average price of those shares.

a)

TRUE

b)

FALSE

15.

To meet the person's/ the company's goal, investment portfolio should be changed once in a while.

a)

TRUE.

b)

FALSE.