WorksheetsPF - 6.1: Quiz
Total questions: 9
Worksheet time: 5mins
Name
Class
Date
1.
The individual assets contained in an actively mutual fund are selected by…
a)
The pool of investors
b)
The investor who owns the most shares of the fund
c)
An automated computer program
d)
A professional fund manager
2.
Which is the best description of an index fund?
a)
A mutual fund that tracks the performance of a specific market benchmark
b)
A retirement fund for employees over age 50
c)
An index made up exclusively of government bonds
d)
A safe investment product that guarantees a high rate of return
3.
One downside of active investing is that…
a)
You must have a license, certification, or college degree to make these types of investments
b)
You must buy and sell each day in order for it to work correctly
c)
You are paying a fund manager who charges fees that will eat into your potential returns
d)
You cannot diversify your portfolio using this strategy
4.
All of the following are true about target date funds (TDFs), EXCEPT…
a)
TDFs automatically reallocate your investments over time
b)
TDFs are a good investment option for hands-off investors
c)
TDFs track the performance of a particular market index
d)
TDFs are invested in primarily in stocks when the target date is far in the future
5.
How is an exchange traded fund (ETF) different from a mutual fund?
a)
An ETF can be traded throughout the day and bought from other investors, like a stock
b)
An ETF can only be bought at the end of the day from the fund provider
c)
An ETF is usually actively traded and has higher expense ratios
d)
An ETF is a pooled investment that uses funds from many different investors
6.
What is a robo-advisor?
a)
A security algorithm used by some fund managers to protect your investments
b)
An investment management service that uses a computer program to manage assets
c)
A financial manager who provides specialized advice about technology funds
d)
A popular type of exchange traded fund (ETF) with a low minimum investment
7.
The individual assets contained in an actively managed mutual fund are selected by…
a)
The pool of investors
b)
The investor who owns the most shares of the fund
c)
An automated computer program
d)
A professional fund manager
8.
Which is the best description of an index fund?
a)
A mutual fund that tracks the performance of a specific market benchmark
b)
A retirement fund for employees over age 50
c)
An index made up exclusively of government bonds
d)
A safe investment product that guarantees a high rate of return
9.
One downside of active investing is that…
a)
You must have a license, certification, or college degree to make these types of investments
b)
You must buy and sell each day in order for it to work correctly
c)
You are paying a fund manager who charges fees that will eat into your potential returns
d)
You cannot diversify your portfolio using this strategy
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