34. An open-end mutual fund: (Select the best answer below.) a) allows investors to buy and sell shares within the fund but the time is limited. b) sells shares directly to investors and purchases those shares back whenever investors wish to sell their shares. c) has funds in a family or group of separately managed funds, d) is open to all investors. 35. With a a) No-load mutual fund , a fee is charged if shares are redeemed within a set period of time. b) Back-end load mutual fund c) Front-end load mutual fund d) Closed-end mutual fund 36. A mutual fund's net asset value is the: (Select the best answer below.) a) market value of all the securities it has purchased minus the market value of all the securities it has sold. b) market value of all the securities it has purchased minus dividend distributions to the fund's shareholders. c) market value of all the securities it has purchased minus any liabilities owed. dj number of shares of each security the fund holds times the current share price of the security. 37. Investors should pay attention to management expense ratios (MERs) because a) MERs are added to the purchase price. b) MERs are subtracted from the selling price. c) mutual funds are only worthwhile if they offer a high enough return to offset a higher MER. d) MERs are the load fee. 38. The higher the expected return, a) the higher the expense ratio. b) the lower the expense ratio. c) the higher the risk. d) the lower the risk. 39. A mutual fund that invests only in shares of gold mining companies would be called a a) growth fund. b) small-cap fund. c) Canadian equity fund. d) sector fund. 40. A Fund Facts document is (Select the best answer below.) a) an application to buy shares in a fund. b) a document that provides financial information about a mutual fund. c) a legal contract between the mutual fund company and the investor d) a document that is not required by law but is provided by most mutual fund companies. Page 7 of 1 FNCE1 125 - Introduction to Finance FINAL EXAM