ABA CTFA Practice Test - Questions Answers, Page 18
List of questions
Question 171

Loan funds_________:
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
Suggested answer: A
Question 172

Dollar cost averaging __________:
Is the best way to beat the market
Requires minimum paperwork
Means investing based on the dollar value
Means investing a fixed amount periodically
Suggested answer: D
Question 173

Large growth funds own:
Large company stocks that have grown recently
Large company stocks expected to grow fast
Large amount of growing companies
Growing amounts of large companies
Suggested answer: B
Question 174

Small growth funds own_______:
Small company stocks that have grown recently
Small company stocks expected to grow fast
Small amount of growing companies
Small amounts of large companies
Suggested answer: B
Question 175

Which turnover rate suggests a more tax efficient funds?
10%
100%
5%
200%
Suggested answer: C
Question 176

A typical mutual fund doesn't generally:
Invest commercial papers
Invest in small growth companies
Invest in large growth companies
Invest in stocks
Suggested answer: D
Question 177

The number of mutual funds is:
Under 10 thousand
Under 5 thousand
Over 100 thousand
Over 15 thousand
Suggested answer: D
Question 178

Bond funds offer_________:
Zero volatility
Relatively stable income
Superior capital appreciation
No-risk investment
Suggested answer: B
Question 179

Mutual funds make you money through:
Currency appreciation
Tax deductions
income and capital appreciation
Yield
Suggested answer: C
Question 180

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 .
less than 0.75
more than 0.75, but less than 1.10
equal to 1.10
equal to 0.95 {i.e., (1/3) x (0.75 + 1.00 + 1.10)}
Suggested answer: B
Question