Funds Intermediate: Growth 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.
What is the objective of growth mutual funds?
Choose wisely. There is only one correct answer.
To grow over time. The objective of growth funds is to grow in value over time. Providing income is not a priority.
2.
Which of the following is a strategy that the manager of an aggressive-growth mutual fund may use to increase the funds value?
Choose wisely. There is only one correct answer.
Frequent buying and selling. This strategy helps the manager avoid the risk that a stock will plunge in value.
3.
Large-cap companies are popular choices for growth mutual funds.
Choose wisely. There is only one correct answer.
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.
4.
Stocks that sell below their worth are called _______ stocks.
Choose wisely. There is only one correct answer.
Value. Stocks that managers believe are selling for less than they are worth are called value stocks.
5.
The performance of a growth mutual fund depends upon the _______ of the securities it contains.
Choose wisely. There is only one correct answer.
Performance. A fund is only as good as the investments it contains.