Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
Which type of fund is least likely to be affected by a change in management?
An index fund. Index funds mimic indexes; no matter who is managing, the selection of stocks will be according to that benchmark.
3.
Which government source provides you with information on funds?
Securities and Exchange Commission. The Securities and Exchange Commission provides the EDGAR database of information on funds.
4.
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.
5.
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.
