Funds Intermediate: Growth Mutual Funds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
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.
2.
Growth mutual funds rarely make the list of top ten funds from one year to the next because _______.
Choose wisely. There is only one correct answer.
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.
The stocks that growth mutual funds invest in may not pay dividends.
Choose wisely. There is only one correct answer.
True. A corporation may reinvest its surplus earnings back into its stocks to expand the company rather than pay dividends.
4.
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.
5.
The Acme Internet Enterprise Fund, which is an up-and-coming Internet mutual fund, is likely to be a sector fund.
Choose wisely. There is only one correct answer.
True. According to its name, it invests in one area of the marketthe Internet.