Funds Intermediate: Balanced Mutual Funds

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.
Balanced mutual funds are less conservative than pure stock funds.
Choose wisely. There is only one correct answer.
False. Balanced funds are more conservative than pure stock funds. They contain a lot of bonds.
2.
To evaluate a balanced mutual fund, it is best to compare its total return with _______.
Choose wisely. There is only one correct answer.
Total returns of similar balanced funds. Compare the funds total return to those of other funds with similar investment strategies.
3.
The "balance" in a balanced mutual fund usually means ________.
Choose wisely. There is only one correct answer.
Assets that grow are mixed with assets that generate income. With this approach, balanced funds minimize the losses of high-volatility assets.
4.
A portfolio is diversified if it focuses primarily on one asset class.
Choose wisely. There is only one correct answer.
False. A portfolio is diversified if it contains several types of assets with different characteristics.
5.
Which of the following can help you evaluate the performance of a balanced mutual fund?
Choose wisely. There is only one correct answer.
All of the above. Turnover, total return, and current asset holdings can all be used to judge a balanced funds performance.