ABA CTFA Practice Test - Questions Answers, Page 18
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Loan funds_________:
A.
Charge extra fees to buy or sell shares
B.
Don't perform as well as no load funds
C.
Invest only in foreign securities
D.
Can't be bought through fund supermarkets
Dollar cost averaging __________:
A.
Is the best way to beat the market
B.
Requires minimum paperwork
C.
Means investing based on the dollar value
D.
Means investing a fixed amount periodically
Large growth funds own:
A.
Large company stocks that have grown recently
B.
Large company stocks expected to grow fast
C.
Large amount of growing companies
D.
Growing amounts of large companies
Small growth funds own_______:
A.
Small company stocks that have grown recently
B.
Small company stocks expected to grow fast
C.
Small amount of growing companies
D.
Small amounts of large companies
Which turnover rate suggests a more tax efficient funds?
A.
10%
B.
100%
C.
5%
D.
200%
A typical mutual fund doesn't generally:
A.
Invest commercial papers
B.
Invest in small growth companies
C.
Invest in large growth companies
D.
Invest in stocks
The number of mutual funds is:
A.
Under 10 thousand
B.
Under 5 thousand
C.
Over 100 thousand
D.
Over 15 thousand
Bond funds offer_________:
A.
Zero volatility
B.
Relatively stable income
C.
Superior capital appreciation
D.
No-risk investment
Mutual funds make you money through:
A.
Currency appreciation
B.
Tax deductions
C.
income and capital appreciation
D.
Yield
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 .
A.
less than 0.75
B.
more than 0.75, but less than 1.10
C.
equal to 1.10
D.
equal to 0.95 {i.e., (1/3) x (0.75 + 1.00 + 1.10)}
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