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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
If you want to read about your options for mutual fund investment plans, you can find them in the shareholder manual.
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True. Investment plans are part of a shareholder's privileges.
2.
The mutual fund advisor may play additional roles besides that of advisor.
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True. It may also be the transfer agent.
3.
Which of the following is not a transaction fee?
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Management fee. This fee is an operating expense. It is not related to trading.
4.
One reason prospectuses use technical and precise language is to protect the consumer.
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True. This language makes it harder to misinterpret what is in a document.
5.
What does the section on the fund's objectives tell the investor?
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All of the above. The "Objectives" section includes strategies, philosophy, and objectives.
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.