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1.
A mutual fund shareholder manual does all of the following except explain how _______.
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Taxes apply. The shareholder manual explains share price, redemption, and adding to your account.
2.
A mutual fund prospectus does all of the following except _______.
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Make recommendations. Prospectuses are forbidden to advertise a fund.
3.
The mutual fund advisor may play additional roles besides that of advisor.
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True. It may also be the transfer agent.
4.
Which of the following is an operating expense in a mutual fund?
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12b-1 fee. Taxes are not operating expenses, and the other two are transaction fees.
5.
A mutual fund objective may include a statement of the level of income it seeks.
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True. This is one of the most important parts of the objective.
6.
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.