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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
An objective may include a statement of the level of share-price stability it seeks.
Choose wisely. There is only one correct answer.
True. Stability is often a strategy for achieving an objective.
2.
Transaction fees cover buying and selling costs of securities within a mutual fund.
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True. Transacting is essentially buying and selling portfolio securities.
3.
Which of the following pieces of information on portfolio managers is included in a mutual fund prospectus?
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Employment history. This provides a sense of the managers' experience.
4.
One reason prospectuses use technical and precise language is to protect the consumer.
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True. This language makes it harder to misinterpret what is in a document.
5.
Which of the following is not covered under a prospectus' section on performance?
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Risks. The "Performance" section deals with objective data.
6.
The mutual fund shareholder manual explains how to open a mutual fund account.
Choose wisely. There is only one correct answer.
True. That is one of its most basic services.