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1. (TCOs 6 and 7) The Capitalist Mutual Fund\'s portfolio is valued at $48 milli

ID: 2734949 • Letter: 1

Question

1. (TCOs 6 and 7) The Capitalist Mutual Fund's portfolio is valued at $48 million. The fund has liabilities of $4 million, and the investment company sponsoring the fund has issued 1,600,000 shares. What is the fund's net asset value? (Points : 1)        $48.00
       $30.00
       $36.66
       $27.50
       $1 Question 2.2. (TCOs 6 and 7) A(n) _____ mutual fund is one in which investors pay a commission every time they purchase shares. (Points : 1)        closed-end
       open-end
       no-load
       load
       convertible Question 3.3. (TCOs 6 and 7) The All-Star Basic Value Fund's portfolio is valued at $215 million. The fund has liabilities of $5 million, and the investment company sponsoring the fund has issued 15 million shares. What is the fund's net asset value? (Points : 1)        $14.33
       $14.00
       $21.50
       $21.00
       $3.00 Question 4.4. (TCOs 6 and 7) A(n) _____ fund is a mutual fund that invests in common stocks and bonds with the primary objectives of conserving capital, providing income, and seeking long-term growth. (Points : 1)        income
       growth
       industry
       balanced
       money market Question 5.5. (TCOs 6 and 7) A(n) _____ fund is a mutual fund that invests in companies outside the United States. (Points : 1)        growth-income
       income
       international
       industry
       global market Question 6.6. (TCOs 6 and 7) Teresa Jones is interested in an indirect real estate investment. An example of this would be (Points : 1)        a single-family dwelling.
       a duplex.
       an apartment.
       land.
       a participation certificate. Question 7.7. (TCOs 6 and 7) Samuel may participate in a direct real estate investment opportunity, so he would only need to consider which option as an example of a direct real estate investment? (Points : 1)        Limited partnership
       Real estate dwelling
       Real estate syndicate
       Real estate investment trust
       Mortgage pool Question 8.8. (TCOs 6 and 7) Which REIT pools money to finance construction loans? (Points : 1)        Mortgage REIT
       Compound REIT
       Hybrid REIT
       Simple REIT
       Equity REIT Question 9.9. (TCOs 6 and 7) An investor holds legal title to a piece of property if he or she participates in what type of real estate investment? (Points : 1)        Ginnie Mae
       Participation certificates (PCs)
       REITs
       Direct investment
       Indirect investment Question 10.10. (TCOs 6 and 7) You have purchased a condominium in Orlando, FL in order to rent out rooms to vacationers. What type of investment have you made? (Points : 1)        Direct investment in real estate
       Indirect investment in real estate
       Investment in precious metals
       Investment in collectibles
       Investment in gems Question 11.11. (TCOs 6 and 7) All of the following are misconceptions about retirement planning except for which? (Points : 1)        My expenses will drop when I retire.
       My retirement will last only 8 years.
       I can depend on Social Security income and Medicare for medical bill payment.
       I can depend on my company pension.
       My savings will still be affected by inflation. Question 12.12. (TCOs 6 and 7) The average life expectancy of a woman at age 65 is (Points : 1)        9 years.
       16 years.
       13 years.
       11 years.
       19 years. Question 13.13. (TCOs 6 and 7) If your mortgage is largely or completely paid off, then you may be eligible for a (Points : 1)        reverse mortgage annuity.
       variable annuity.
       mortgage advance.
       regional-based annuity.
       mortgage package. Question 14.14. (TCOs 6 and 7) As an individual approaches retirement age, he or she may consider (Points : 1)        increasing the face value of his or her life insurance.
       increasing his or her property insurance coverage.
       keeping his or her life insurance intact.
       decreasing the face value of his or her life insurance.
       exchanging his or her old life insurance policy with a new one. Question 15.15. (TCOs 6 and 7) As people grow older, which type of housing is designed to allow people to stay in their homes more easily? (Points : 1)        Accessory apartment
       ECHO unit
       Rooming house
       Universal design
       Professional companionship arrangement Question 16.16. (TCOs 6 and 7) Estate planning involves _____ if a person is married. (Points : 1)        the interest of at least two people
       fewer legal requirements
       fewer financial responsibilities
       seeking the services of a securities broker
       None of the above Question 17.17. (TCOs 6 and 7) _____ refers to what Gerald Wilkins has in his possession and owns, including a home worth $250,000, a car worth $15,000, various investments worth $600,000, and other personal assets worth $25,000. (Points : 1)        A trust
       A will
       An estate
       Probate
       None of the above Question 18.18. (TCOs 6 and 7) The definition of a will is that it is (Points : 1)        a synonym for a letter of last instruction.
       a synonym for a prenuptial agreement.
       a legal document authorizing someone to act on your behalf.
       the legal declaration of a person's mind as to the disposition of his or her property after his or her death.
       a legal arrangement through which your assets are held by someone. Question 19.19. (TCOs 6 and 7) Which is a will that leaves everything to your spouse when you die? (Points : 1)        A stated dollar amount will
       A traditional marital share will
       An exemption trust will
       A simple will Question 20.20. (TCOs 6 and 7) If you formulate a will using your own handwriting, this is called a(n) (Points : 1)        signature will.
       formal will.
       holographic will.
       letter of last instruction.
       informal will. 1. (TCOs 6 and 7) The Capitalist Mutual Fund's portfolio is valued at $48 million. The fund has liabilities of $4 million, and the investment company sponsoring the fund has issued 1,600,000 shares. What is the fund's net asset value? (Points : 1)        $48.00
       $30.00
       $36.66
       $27.50
       $1

Explanation / Answer

1. NAV = ($48 million- $4 million/1.6 million shares) =$27.5 Question 2.2. Load mutual fund is one in which investors pay a commission every time they purchase shares. Question 3.3 NAV = ($215 million- $5 million/15 million shares) =$14 Question 4.4. Growth fund is a mutual fund that invests in common stocks and bonds with the primary objectives of conserving capital, providing income, and seeking long-term growth. Question 5.5. International fund is a mutual fund that invests in companies outside the United States. Question 6.6. (TCOs 6 and 7) Teresa Jones is interested in an indirect real estate investment. An example of this would be   a participation certificate. Question 7.7. (TCOs 6 and 7) Samuel may participate in a direct real estate investment opportunity, so he would only need to consider which option as an example of a direct real estate investment .- Limited Partnership. Question 8.8. (TCOs 6 and 7) Which REIT pools money to finance construction loans.- Hybrid REIT Question 9.9.An investor holds legal title to a piece of property if he or she participates in what type of real estate investment.- Direct Investment Question 10.10. (TCOs 6 and 7) You have purchased a condominium in Orlando, FL in order to rent out rooms to vacationers. What type of investment have you made. - Direct investment in real estate Question 11.11. (TCOs 6 and 7) All of the following are misconceptions about retirement planning except for which.- I can depend on Social Security income and Medicare for medical bill payment. Question 12.12. (TCOs 6 and 7) The average life expectancy of a woman at age 65 is 19 years. Question 13.13. (TCOs 6 and 7) If your mortgage is largely or completely paid off, then you may be eligible for a - Mortgage package. Question 14.14. (TCOs 6 and 7) As an individual approaches retirement age, he or she may consider (exchanging his or her old life insurance policy with a new one. Question 15.15. (TCOs 6 and 7) As people grow older, which type of housing is designed to allow people to stay in their homes more easily.-Universal Design. Question 16.16. (TCOs 6 and 7) Estate planning involves the interest of at least two people if a person is married. Question 17.17. (TCOs 6 and 7) An Estate refers to what Gerald Wilkins has in his possession and owns, including a home worth $250,000, a car worth $15,000, various investments worth $600,000, and other personal assets worth $25,000. Question 18.18. (TCOs 6 and 7) The definition of a will is that it is the legal declaration of a person's mind as to the disposition of his or her property after his or her death. Question 19.19. (TCOs 6 and 7) Which is a will that leaves everything to your spouse when you die. - A stated dollar amount will Question 20.20. (TCOs 6 and 7) If you formulate a will using your own handwriting, this is called holographic will.