The Investors Who Invest in Venture Capital Funds are Called​

PDFaid.Com #1 Pdf Solutions b) managers of mutual funds do not analyze economic and industry trends which of the following statements is incorrect? a) mutual funds serve as a key financial intermediary. b) managers of mutual funds do not analyze economic and industry trends c) because of their diversification, management expertise, and liquidity, mutual funds have grown at a rapid pace. d) some mutual funds offer check-writing privileges c) the mutual fund of concern; registered representatives of a brokerage firm no-load mutual funds are normally promoted by ______. Load funds are promoted by _______. a) registered representatives of a brokerage firm; registered representatives of a brokerage firm b) registered representatives of a brokerage firm; the mutual fund of concern c) the mutual fund of concern; registered representatives of a brokerage firm d) the mutual fund of concern; the mutual fund of concern a) management fees of 1 to 2 percent of total assets per year to cover managerial expenses, mutual funds typically charge: a) management fees of 1 to 2 percent of total assets per year b) commissions of typically 8 to 10 percent of transaction market value per year c) management fees of typically more than 10 percent of total assets per year d) commissions of typically 3 to 5 percent of transaction market value per year open-end a) close-end mutual funds that are willing to repurchase their shares from investors at any time are referred to as ________ mutual funds a) close end b) load c) no-load d) open-end mutual funds that do not repurchase their shares from investors are ______ mutual funds a) close-end b) load c) no-load d) open-end a) stocks and bonds d) none of these most closed-end funds invest in a) stocks and bonds b) money market securities c) gold d) derivatives exchange-traded funds are like open-end funds in the sense that: a) their shares are traded on an exchange, and their share price changes throughout the day b) they have a fixed number of shares c) they are not actively managed d) none of these c) they accomodate investors who want to sell their shares back to the fund hedge funds differ from open-end mutual funds in the sense that: a) they require a much smaller initial investment b) they are open to additional investments at any time c) they do not accomodate investors who want to sell their shares back to the fund d) they invest in a very limited set of securities b) are required to disclose the names of their portfolio managers in the prospectus mutual funds: a) are unregulated b) are required to disclose the names of their portfolio managers in the prospectus c) must disclose their performance record over the past 20 years d) are exempt from all taxes d) all of these are disclosed in the prospectus which of the following is not disclosed in the prospectus? a) the minimum amount of investment required b) the investment objective of the funds c) the fees incurred by the mutual fund d) all of these are disclosed in the prospectus d) short term securities a) share price appreciation b) capital appreciation a) income b) shorter; less money market funds invest mostly in: a) stocks b) longterm bonds c) real estate d) short term securities if investors sell their mutual fund shares after the net asset value of fund increases, the return is called: a) share price appreciation b) capital gains distribution c) dividends d) split net asset value mutual funds composed of stocks that have potential for very high growth, but may aslo be unproven, are called ______ funds a) income b) capital appreciation c) specialty d) dividend mutual funds composed of bonds that offer periodic coupon payments are ________ funds a) income b) speciality c) dividend d) growth mutual funds whose bonds have a ______ average time to maturity are __________ sensitive to interest rate fluctuations a) longer; less b) shorter; less c) shorter; more d) none of these b) decreases a) global a) speciality a) common stock d) 90 the net asset value of international stock mutual funds ________ as the dollar strengthens against foreign currencies. (assume no change in the prices of foreign stocks) a) increases b) decreases c) is unaffected d) increases or decreases (depending on the dollar's degree of strength) mutual funds that include some non-US stocks and US stocks are called __________ funds a) global b) foreign c) combined d) mixed a mutual fund consisting only of stocks of firms that are in a specific industry is an example of a ____________ fund a) speciality b) growth c) capital appreciation d) growth and income the majority of mutual fund assets are in the form of: a) common stock b) preferred stock c) US government bonds d) municipal bonds if a mutual fund distributes at least __________ percent of its taxable income to shareholders, the fund is exempt from taxes on dividends, interest, and capital gains distributed to shareholders. a) 25 b) 50 c) 75 d) 90 a) selling some of its assets contained in the portfolio a) commercial paper b) shorten d) low; low b) directly in properties when the redemptions of money market mutual fund shares exceed sales of shares, the fund accommodates the amount of excessive redemptions by: a) selling some of the assets contained in the portfolio b) issuing stock c) issuing bonds d) borrowing from banks money market fund assets are dominated by: a) commercial paper b) repurchase agreements c) treasury bills d) CDs if money market funds definitely expect interest rates to increase, they will _______ their average asset maturity: a) not adjust b) shorten c) lengthen d) shorten (if the expected change is small) or lengthen (if the expected change is large) money market funds are normally perceived to have ________ interest rate risk, and ____________ default risk. a) low; high b) high; high c) high; low d) low; low equity real estate investment trusts invest: a) in mortgage and construction loans b) directly in properties c) in common stocks issued by construction companies d) in common stocks issued by real estate brokerage firms d) mortgage; decrease c) increase; reduce d) neither of these a) net asset value c) no-end because ________ real estate investment trusts essentially represent a fixed income portfolio, their market value will __________ as interest rates increase. a) equity; increase b) equity; decrease c) mortgage; increase d) mortgage; decrease when interest rates decline, investors who want to earn a high return may tend to __________ their investment in stock mutual funds, and ___________ deposits in depository institutions. a) reduce; reduce b) reduce; increase c) increase; reduce d) increase; increase the composition of asset allocation funds is: a) focused completely on one type of security as specified by the particular mutual fund b) fixed and not altered by the mutual fund managers c) both of these d) neither of these the ___________ of a mutual fund indicates the value per share a) net asset value b) gross asset value c) net stock value d) net bond value e) none of these mutual funds whose funds are promoted strictly by the mutual fund of concern are called ___________ mutual funds. a) close-end b) load c) no-load d) open-end b) income b) bond a) securities exchange commission (SEC) mutual funds that are composed of bonds that offer periodic coupon payments and vary in exposure to risk are called ________ mutual funds a) tax-free b) income c) high-yield d) growth e) none of these _______ mutual funds are most likely to invest in mortgages. a) stock b) bond c) load d) closed-end e) none of these hedge funds that exceed a specified size must register with the: a) securities and exchange commission (SEC) b) federal reserve c) office of thrift supervision d) federal mutual fund board b) outsiders (not employed by the fund) according to SEC regulations, the majority of the members on a mutual fund's board of directors must be: a) employed by the fund b) outsiders (not employed by the fund) c) certified public accountants d) certified financial analysts a) annual fees charged to investors; 12b-1 fees an expense ratio represents ______________ divided by the fund's ________ a) annual fees charged to investors; 12b-1 fees b) annual fees charged to investors; net asset value c) initial sales charge (load); 12b-1 fees d) initial sales charge (load); net asset value b) bonds d) if mutual fund managers expect interest rates to decrease in the future, they should use funds generated from maturing securities to purchase new securities with short maturities c) the portfolio management of both EFTs and index mutual funds is very complex b) exchange traded funds b) growth mutual funds most closed-end funds invest in: a) derivatives b) bonds c) money market securities d) international equity securities which of the following statements is incorrect? a) commercial paper is the largest component in money market funds b) from an investor's perspective, money market funds usually have a low level of credit risk c) if managers are unable to change the asset composition of money market funds, they can still influence performance by changing the maturities of the securities in which they invest d) if mutual fund managers expect interest rates to decrease in the future, they should use funds generated from maturing securities to purchase new securities with short maturities which of the following statements is incorrect? a) EFTs are like index mutual funds because they share price adjusts over time in response to the change in the index level b) both efts and index mutual funds pay dividends in the form of additional shares to investors c) the portfolio management of both EFTs and index mutual funds is very complex d) EFTs can be traded throughout the day funds that are designed to mimic particular stock indexes and are traded on a stock exchange are known as: a) index mutual funds b) exchange-traded funds c) money market funds d) none of these _______ are not exchange traded funds. a) spiders b) growth mutual funds c) diamonds d) sector spiders a) spiders true false false false __________ trade at one-tenth the S&P 500 value a) spiders b) cubes c) diamonds d) world equity benchmark shares investing in mutual funds is different from depositing money in a depository institution in that it represents partial ownership, whereas deposits represent a form of credit. true or false the net asset value of a mutual fund is estimated once every week true or false a front-end load is a withdrawal fee assessed when you withdraw money from the mutual fund. true or false the number of exchange traded funds has declined over the last several years because of the cost of managing them was excessive true or false true true true false false exchange traded funds can be purchased on margin true or false exchange traded funds can be shorted true or false mutual fund managers seek securities that have much liquidity so that they can easily sell them in the secondary market at any time. true or false closed-end funds are closed to new investment but allow redemption by shareholders true or false closed-end fund managers must hold more cash than mutual fund managers true or false true false true false true index mutual funds are not traded throughout the day, while exchange-traded funds are. true or false venture capital funds commonly invest in stocks of publicly traded companies. true or false many businesses that go public are partially backed by venture capital before the IPO. true or false private equity funds use most of their money to invest in stocks of publicly traded companies. true or false vulture funds are a type of private equity fund that purchase distressed assets of a firm that is in or near bankruptcy true or false true hedge funds commonly engage in short selling true or false