Reference no: EM132348506

1. A(n) ________________ mutual fund invests funds in short-term securities like Treasury bills, jumbo CDs, and commercial paper.

A. REIT

B. hybrid fund

C. closed-end investment company

D. equity mutual fund

E. money market mutual fund

2. A(n) __________________ has customer demand for the shares determining the number of shares outstanding.

A. general partnership

B. limited partnership

C. open-end

D. REIT

E. closed-end

3. A no-load mutual fund:

A. has zero operating expenses.

B. is typically marketed directly to customers, charging no commission.

C. is a type that no longer exists.

D. does not invest in common stocks.

E. has a zero or negative rate of return in the most recent year.

4. Fees considered "12b-1 fees" are:

A. fees that investment companies must pay to the SEC.

B. fees charged by some mutual funds, due to distribution and marketing costs.

C. up-front "load" fees, charged by some mutual funds.

D. back-end "load" fees, charged by some mutual funds.

E. fees charged by mutual funds, to compensate the portfolio manager.

5. Verysmall Mutual Fund's investment portfolio is comprised of the following:  1,000 shares of General Mills (GIS, current price is $50 per share); 3,000 shares of Bank of America Corp (BAC, current price is $30 per share); and 2,500 shares of United Airlines Holdings (UAL), current price is $90 per share).  Verysmall Mutual Fund has sold a total of 15,000 of its own shares to customers.  What is Verysmall Mutual Fund's net asset value?

A. $21.00

B. $24.33

C. $41.67

D. $40.56

E. $125.00