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LOS b: Distinguish among style, sector, index, global, and stable value strategies in equity investment and among exchange traded funds (ETFs), traditional mutual funds, and closed end funds.
Q1. Growth, value, large-cap, and small-cap investing are all examples of:
A) style investment strategies.
B) sector investment strategies.
C) index investment strategies.
Q2. The Big Fund is a mutual fund that invests primarily in the equity of pharmaceutical companies. The investment style of the Big Fund can best be classified as a:
A) style strategy.
B) large-cap strategy.
C) sector strategy.
Q3. A portfolio that pursues a stable-value investment strategy would most likely invest in:
A) low P/E stocks.
B) high P/E stocks.
C) short-term Treasuries.
Q4. Closed-end funds and exchange traded funds (ETFs) have which of the following characteristics in common?
A) Shares of both closed-end funds and ETFs trade in the secondary market.
B) Both closed-end funds and ETFs stand ready to redeem shares.
C) The structures of closed-end funds and ETFs prevent shares from trading at a significant premium or discount to NAV.
Q5. Which of the following statements about exchange-traded funds (ETFs) and closed-end funds is least accurate?
A) ETFs attempt to track the performance of a stock index, but closed-end funds usually do not.
B) ETFs can only trade in the secondary market, while closed-end funds can be redeemed in cash by the manager of the underlying index.
C) Because of arbitrage, shares of an ETF rarely trade at a premium or discount to NAV as shares of a closed-end fund often do.
Q6. Which of the following statements regarding exchange traded funds (ETFs) is FALSE?
A) ETFs are funds that can be traded in a stock market.
B) ETF shares can be sold short or margined.
C) ETF investors own shares of the underlying investment company. | 
发表于 2009-2-28 15:01
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