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Price risk is the risk that securities will cost too much.

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True

False

False. Price risk is the risk that securities will be overvalued by the market.

The large differences in size among funds in the "small-cap" section of the Morningstar style box mean that _______.

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They will all perform largely the same way

Some will outperform others at times

Nothing can be concluded about performance

Some will outperform others at times. Some funds will perform better than others during market conditions that favor the companies they hold.

A fund's turnover rate is usually calculated _______.

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Once a year

Once a month

Daily

None of the above

Once a year. As a rule, turnover rates are calculated yearly.

Sector weightings in a fund tell you how much price risk a fund is taking on.

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True

False

False. Sector weightings tell you the industries your manager favors.

A fund's number of holdings tells you how much sector risk a fund is taking on.

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True

False

False. The number of holdings tells you how much per-issue risk a fund is taking on.

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