Mutual funds let you invest_________.

Invest in many stocks with relatively little money

The fund's investment objective can be found in:

Statement of omitted information

Statement of additional information

Large- value funds own__________.

Large company stocks considered under valued

Large company stocks considered overvalued

Large amounts of value companies

Large company stocks considered under valued

Small-value funds own__________:

Small company stock considered undervalued

Small amounts of value companies

Small company stocks considered overvalued

Charge extra fees to buy or sell shares

Don't perform as well as no load funds

Invest only in foreign securities

Can't be bought through fund supermarkets

Dollar cost averaging __________:

Means investing a fixed amount periodically

Is the best way to beat the market

Means investing based on the dollar value

Means investing a fixed amount periodically

Large growth funds own:

Large company stocks expected to grow fast

Large company stocks that have grown recently

Large company stocks expected to grow fast

Large amount of growing companies

Growing amounts of large companies

Small growth funds own_______:

Small company stocks expected to grow fast

Small company stocks that have grown recently

Small company stocks expected to grow fast

Small amount of growing companies

Small amounts of large companies

A typical mutual fund doesn't generally:

Invest in small growth companies

Invest in large growth companies

Mutual funds make you money through:

income and capital appreciation

Espinosa Coffee & Trading, Inc.'s common stock measured beta is calculated to be 0.75. The market beta is, of course, 1.00 and the beta of the industry of which the company is a part is 1.10. If Merrill Lych were to calculate an 'adjusted beta' for Espinosa's common stock, that adjusted beta would most likely be .

more than 0.75, but less than 1.10

equal to 0.95 {i.e., (1/3) x (0.75 + 1.00 + 1.10)}

The 12b-1 fee covers_____________:

Fund's distribution and advertising cost

The maximium credit amount that can be used on your credit card

The minimum credit amount that can be used on your credit card

The maximium credit amount that can be used on your ATM card

The minimium credit amount that can be used on your ATM card

APR is the same as the interest rate.

APR is not comparable with interest rate

Dealer holdback is an allowance:

That manufacturer gives to the buyer

That supplier gives to the buyer

That wholesaler gives to the buyer

Dealer charges include extras such as extended warranty.

Sometimes it includes, sometimes not

High price earnings ratio often indicate that investors:

Are optimistic about the company

Don' t worry about the inflation

ABA CTFA Practice Test 5 - Free Online Exam Prep & Questions

A mortgage which is in first lien position, taking priority over all other liens.

First mortgage

Callable debt

Fixed rate mortgage

Graduated payment mortgage

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