Funds Intermediate: Growth Mutual Funds

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1.
Large-cap companies are popular choices for growth mutual funds.
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False. Although they may be included, they are not as frequently chosen as small-caps and mid-caps are. These latter companies generally have more room to grow than large-caps do.
2.
Growth mutual funds rarely make the list of top ten funds from one year to the next because _______.
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They are very volatile. They may not perform as well as "top ten" funds every year, but over the course of many years, they show steady growth.
3.
What is the objective of growth mutual funds?
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To grow over time. The objective of growth funds is to grow in value over time. Providing income is not a priority.
4.
Stocks that sell below their worth are called _______ stocks.
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Value. Stocks that managers believe are selling for less than they are worth are called value stocks.
5.
The Acme Internet Enterprise Fund, which is an up-and-coming Internet mutual fund, is likely to be a sector fund.
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True. According to its name, it invests in one area of the marketthe Internet.