Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
In the world of mutual funds, what are outstanding shares?
Choose wisely. There is only one correct answer.
Shares owned by the public. To be "outstanding" is to be in the public's possession.
2.
Diversification spreads risk among several different investments.
Choose wisely. There is only one correct answer.
True. Each investment has its own risk profile.
3.
The mutual fund advisor may play additional roles besides that of advisor.
Choose wisely. There is only one correct answer.
True. It may also be the transfer agent.
4.
When a mutual funds individual holdings make money, so do the mutual funds shareholders.
Choose wisely. There is only one correct answer.
True. Earnings are passed from the holdings to the funds shareholders.
5.
Which of the following pieces of information on portfolio managers is included in a mutual fund prospectus?
Choose wisely. There is only one correct answer.
Employment history. This provides a sense of the managers' experience.