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FINA 465 EXAM 1 REVIEW 2026
ACTUAL QUESTIONS WITH VERIFIED
ANSWERS.
Which of the following observations is true of a no-load fund?
A. Purchase is subject to a sales charge.
B. Sales charges may be as high as 8.5 percent.
C. They market shares of the fund directly to investors.
D. They use sales agents.
E. They have up-front commission charges. - correct answer-C.
They market shares of the fund directly to investors.
The debate and research regarding the advantages of load
funds versus no-load funds has revealed that...
A. the proportion of total assets invested in load funds has
decreased over the last 20 years and became less than the
assets in no-load funds in 2002.
B. the cost of the load may not be worth the attention and
advice given to investors.
C. most mutual fund companies offer the majority of their funds
as no-load funds.
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D. a load fee should be annualized over the holding period of
the fund shares.
E. All of the options. - correct answer-E. All of the options.
A mutual fund that charges investors a fee similar to a
commission charge is called a...
A. 12b-1 fee.
B. no-load fund.
C. load fund.
D. long-term fund.
E. short-term fund. - correct answer-C. load fund.
True or False: Long-term mutual funds invest primarily in long-
term, fixed-income securities such as corporate and/or
government bonds. - correct answer-False
True or False: As of 2015, the total investment in long-term
mutual funds is less than the total investment in money market
mutual funds. - correct answer-False
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The long-term mutual fund sector includes...
A. money market mutual funds.
B. equity funds.
C. bond funds.
D. equity funds and bond funds.
E. All of the options. - correct answer-D. equity funds and bond
funds.
Regarding the relative asset size and asset growth rate of
mutual fund sectors between 1980 and 2015...
A. long-term funds had more assets at the end of 2015, but
short-term funds had grown at a faster rate since 1980.
B. long-term funds had more assets at the end of 2015, and
long-term funds had grown at a faster rate since 1980.
C. short-term funds had more assets at the end of 2015, but
long-term funds had grown at a faster rate since 1980.
D. short-term funds had more assets at the end of 2015, and
short-term funds had grown at a faster rate since 1980.
E. More than one of the above is correct. - correct answer-B.
long-term funds had more assets at the end of 2015, and long-
term funds had grown at a faster rate since 1980.
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Open-end mutual funds guarantee...
A. investors a minimum rate of return.
B. investors a minimum Net Asset Value (NAV).
C. to redeem investors' shares upon demand at the daily Net
Asset Value (NAV).D. to earn the rate of return promised in the
prospectus.
E. that there will be no load charges. - correct answer-C. to
redeem investors' shares upon demand at the daily Net Asset
Value (NAV).D. to earn the rate of return promised in the
prospectus.
An open-ended fund has stocks of three companies: 200
shares of IBM currently valued at $50.00, 100 shares of GE
currently values at $20 and 100 shares of Digital currently
valued at $30. The fund has 500 shares outstanding. What is
the net asset value (NAV) of the fund?
A. $30.00.
B. $60.00.
C. $120.00.
D. $12.00.
E. $37.50. - correct answer-A. $30.00.
FINA 465 EXAM 1 REVIEW 2026
ACTUAL QUESTIONS WITH VERIFIED
ANSWERS.
Which of the following observations is true of a no-load fund?
A. Purchase is subject to a sales charge.
B. Sales charges may be as high as 8.5 percent.
C. They market shares of the fund directly to investors.
D. They use sales agents.
E. They have up-front commission charges. - correct answer-C.
They market shares of the fund directly to investors.
The debate and research regarding the advantages of load
funds versus no-load funds has revealed that...
A. the proportion of total assets invested in load funds has
decreased over the last 20 years and became less than the
assets in no-load funds in 2002.
B. the cost of the load may not be worth the attention and
advice given to investors.
C. most mutual fund companies offer the majority of their funds
as no-load funds.
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D. a load fee should be annualized over the holding period of
the fund shares.
E. All of the options. - correct answer-E. All of the options.
A mutual fund that charges investors a fee similar to a
commission charge is called a...
A. 12b-1 fee.
B. no-load fund.
C. load fund.
D. long-term fund.
E. short-term fund. - correct answer-C. load fund.
True or False: Long-term mutual funds invest primarily in long-
term, fixed-income securities such as corporate and/or
government bonds. - correct answer-False
True or False: As of 2015, the total investment in long-term
mutual funds is less than the total investment in money market
mutual funds. - correct answer-False
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The long-term mutual fund sector includes...
A. money market mutual funds.
B. equity funds.
C. bond funds.
D. equity funds and bond funds.
E. All of the options. - correct answer-D. equity funds and bond
funds.
Regarding the relative asset size and asset growth rate of
mutual fund sectors between 1980 and 2015...
A. long-term funds had more assets at the end of 2015, but
short-term funds had grown at a faster rate since 1980.
B. long-term funds had more assets at the end of 2015, and
long-term funds had grown at a faster rate since 1980.
C. short-term funds had more assets at the end of 2015, but
long-term funds had grown at a faster rate since 1980.
D. short-term funds had more assets at the end of 2015, and
short-term funds had grown at a faster rate since 1980.
E. More than one of the above is correct. - correct answer-B.
long-term funds had more assets at the end of 2015, and long-
term funds had grown at a faster rate since 1980.
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Open-end mutual funds guarantee...
A. investors a minimum rate of return.
B. investors a minimum Net Asset Value (NAV).
C. to redeem investors' shares upon demand at the daily Net
Asset Value (NAV).D. to earn the rate of return promised in the
prospectus.
E. that there will be no load charges. - correct answer-C. to
redeem investors' shares upon demand at the daily Net Asset
Value (NAV).D. to earn the rate of return promised in the
prospectus.
An open-ended fund has stocks of three companies: 200
shares of IBM currently valued at $50.00, 100 shares of GE
currently values at $20 and 100 shares of Digital currently
valued at $30. The fund has 500 shares outstanding. What is
the net asset value (NAV) of the fund?
A. $30.00.
B. $60.00.
C. $120.00.
D. $12.00.
E. $37.50. - correct answer-A. $30.00.
