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The mutual fund shareholder manual explains how to open a mutual fund account.

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True

False

True. That is one of its most basic services.

A mutual fund prospectus does all of the following except _______.

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Make recommendations

Identify who manages the fund

Describe its performance history

Explain its investment objectives

Make recommendations. Prospectuses are forbidden to advertise a fund.

The mutual fund prospectus explains the risk of the mutual fund.

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True

False

False. It explains the risks of the types of securities it holds, but it does not cover risks of the fund itself.

The mutual fund advisor may play additional roles besides that of advisor.

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True

False

True. It may also be the transfer agent.

Transaction fees cover buying and selling costs of securities within a mutual fund.

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True

False

True. Transacting is essentially buying and selling portfolio securities.

What does the section on the fund's objectives tell the investor?

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The fund's strategies

The fund's philosophy

What it wishes to gain for its shareholders

All of the above

All of the above. The "Objectives" section includes strategies, philosophy, and objectives.

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