Choose wisely. There is only one correct answer to each question.
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1.
A funds performance can be affected when new funds are added to the family it belongs to.
True. Sometimes, a fund will lose its focus or change its role within the fund.
2.
Which of the following is not a good way to find out if your fund is on the verge of change?
Keep an eye on your funds performance only. Fund performance isnt everything; it wont reflect a manager change, for example, or clue you in to changes that may be on the horizon.
3.
Why might asset growth be a bad thing for some mutual funds?
It can ultimately lower returns. Having a lot of assets can sometimes weigh down returns.
4.
A funds asset growth can lead to many changes. Which of the following is often one of them?
All of the above. All of these are possible effects of asset growth.
5.
As funds grow, how do managers often change their strategies?
They buy more stocks. To accommodate asset growth, some fund managers will buy more stocks, buy larger companies, or trade less.
