multiple choice questions

TIPLE CHOICE 6. A mutual fund in which new shares are issued and redeemed by the investment company at the request of investors is called a (n) fund. a. closed end b. open-end c. load d. no-load Some mutual funds charge 12b-1 fees to defray the cost of a. management of the fund. b. selling assets in the fund's portfolio. c. withdrawal options of the mutual fund. d. marketing of the mutual fund. An investor who wants a tax-free investment would choose an) fund. a balanced b. income c. sector d. municipal bond A document that prospective mutual fund investors receive is called a(n) a. SEC report b. load fund report. c. index fund report. d. prospectus. Payments made to a fund's shareholders that result from the sales of securities in the fund's portfolio are called a. income dividends. b. capital gain distributions. c. tax-free income. d. none of the above