79) A mutual fund has a current offering price of $56.70. What is the net asset value if the fund
charges a 4.5 percent front-end load?
A) $50.74
B) $51.66
C) $54.15
D) $54.86
E) $54.91
80) The High Growth Technology Fund has an NAV of $51.06 and a 4.4 percent front-end load.
What is the offering price?
A) $50.84
B) $51.36
C) $53.41
D) $54.53
E) $55.81
81) The Stable Utility Fund has an offering price of $54.11 and an NAV of $52.48. What is the
front-end load percentage?
A) 3.0 percent
B) 3.1 percent
C) 3.5 percent
D) 3.8 percent
E) 4.0 percent
82) You want to buy 1,200 shares of a mutual fund that has an NAV of $27.80. The fund charges
a 3.75 percent front-end load. How much will you have to spend to make this purchase?
A) $34,659.74
B) $35,913.00
C) $36,953.37
D) $37,333.33
E) $38,445.60
83) You are investing $8,000 in a mutual fund that charges a 4.50 percent front-end load. The
offering price is $24.70 a share. What will your investment be worth immediately after your
shares are purchased?
A) $7,520
B) $7,640
C) $8,000
D) $8,360
E) $8,420
84) Alex invested $10,000 in a mutual fund two and one-half years ago when the NAV of the
fund was $25. Today, the NAV has risen to $28.30. Since the time of his original investment,
Alex has obtained an additional 54.36 shares by reinvesting the fund distributions. The fund
charges a contingent deferred sales charge of 6 percent the first year with the charge decreasing
by 1 percent each year. How much money will he receive if he redeems his shares today?
A) $11,633.78
B) $11,930.52
C) $12,344.05
D) $12,858.39
E) $13,501.31
85) You invested $4,500 in a mutual fund 38 months ago when the NAV of the fund was $31.80.
You have not acquired or sold any shares since that time. Today, the NAV is $30.84. The fund
charges a contingent deferred sales charge of 6, 5, 4, 3, 2, 2, and 1 percent if the shares are
redeemed within the first 7 years, respectively. How much money will you receive if you redeem
your shares today?
A) $4,183.86
B) $4,233.23
C) $4,344.00
D) $4,448.15
E) $4,501.91
86) One year ago, Allison purchased 350 shares of a mutual fund which has a front-end load of
5.25 percent. The NAV at the time of purchase was $30. Today, the NAV is $33. The fund had
total annual expenses of 1.65 percent. There were no fund distributions this past year. What is
Allison’s rate of return for the year?
A) -1.10 percent
B) -1.04 percent
C) 4.23 percent
D) 4.76 percent
E) 5.00 percent
87) Five months ago, you purchased 200 shares of a mutual fund at an offering price of $54 a
share. The fund imposes a front-end load of 4.5 percent and has total annual expenses of 1.08
percent. The NAV of the fund today is $52.40. There were no fund distributions during these
five months. What is your holding period return on this investment?
A) -2.96 percent
B) -1.92 percent
C) 1.44 percent
D) 1.89 percent
E) 2.26 percent
88) Western States Mutual Fund sold $89.5 million of assets during the year and purchased $82
million of new assets. The average daily assets of the fund were $273 million. What is the fund’s
turnover rate for the year?
A) 0.25
B) 0.27
C) 0.30
D) 0.33
E) 1.07
89) The Aggressive Eastern Fund sold $167 million of assets during the year and purchased $162
million of new assets. The average daily assets of the fund were $248 million. What is the
turnover rate?
A) 0.62
B) 0.65
C) 0.67
D) 0.97
E) 1.03
90) Matt owns 724.08 shares of a fund which has a current NAV of $41.04. He has owned all of
these shares for 3.3 years. The fund charges a contingent deferred sales charge which starts at 5
percent for the first year and declines by 1 percent each year. How much cash will he receive if
he redeems all of his shares today?
A) $29,121.92
B) $29,709.36
C) $30,334.82
D) $30,647.55
E) $31,023.14
91) Six years ago, you purchased 210.20 shares of a mutual fund. Since then, you have
reinvested your fund dividends and acquired an additional 36.32 shares. The fund currently has
an NAV of $38.95. The fund charges a contingent deferred sales charge of 5 percent for the first
2 years after which time the charge declines by 1 percent a year. How much money will you
receive if you redeem all of your shares today?
A) $9,320.38
B) $9,414.52
C) $9,505.16
D) $9,603.75
E) $9,699.79
92) You invest $4,300 in a money market fund at the beginning of the year. The fund’s assets
appreciate by 3.2 percent over the year. How many shares of the fund do you own at the end of
the year?
A) 4,300.00 shares
B) 4,437.60 shares
C) 4,529.60 shares
D) 4,682.40 shares
E) 4,700.00 shares
93) One year ago, you invested $7,000 in the no-load Triple A Money Market Fund. You have
neither added to this account nor received any funds from this account since that time. The fund
earned a 5.2 percent rate of return for the past year. How many shares of this fund do you
currently own?
A) 750.00
B) 796.50
C) 7,000.00
D) 7,364.00
E) 7,965.00
94) The High Yield Money Market Fund returned 6.60 percent for the last year. Currently, you
own 8,901.1 shares of this fund. If you invested in this fund one year ago, what was the amount
of your original investment?
A) $8,350.00
B) $8,402.38
C) $8,682.51
D) $8,750.00
E) $9,650.03
95) A taxable money market fund has an annual return of 4.62 percent. What is the equivalent
aftertax yield if the tax rate is 27 percent?
A) 1.25 percent
B) 3.37 percent
C) 4.62 percent
D) 5.87 percent
E) 6.13 percent
96) A tax exempt money market fund has an annual return of 3.76 percent. What is your
equivalent taxable rate if you are in a 28 percent marginal tax bracket?
A) 3.15 percent
B) 3.38 percent
C) 5.22 percent
D) 6.11 percent
E) 6.81 percent
97) The Exploratory Fund is a new closed-end fund which just offered its shares to the public.
The fund raised $66.5 million and each share sold for $10. The fee for the fund promoter was
5.75 percent of the initial proceeds. What was the value of your initial $22,000 purchase before
the shares began trading in the marketplace?
A) $18,400
B) $18,700
C) $19,100
D) $20,000
E) $20,735
98) A closed-end fund has total assets of $379 million and liabilities of $640,000. There are 36
million shares outstanding. What is the premium or discount if the shares are currently selling for
$9.85 each?
A) 7.46 percent discount
B) 6.28 percent discount
C) 6.94 percent discount
D) 6.80 percent premium
E) 7.46 percent premium
99) Which type of investor is most apt to purchase municipal bond funds and why?
100) You want to purchase a security that tracks the S&P 500. What types of securities can you
purchase to accomplish this goal? Which type of security would you purchase and why would
you choose that security over your other options?
101) What are the primary differences between an ETF and an ETN?
102) The Toledo Fund has assets with a market value of $11.5 million and liabilities of
$708,000. What is the net asset value if there are 190,000 shares outstanding?
A) $53.02
B) $55.00
C) $56.80
D) $57.18
E) $58.25
103) At the beginning of the year, you invested $7,500 in a no-load mutual fund with a NAV of
$30.00. At the end of the year, the fund distributed $1.05 per share in short-term earnings and
$3.00 per share in long-term earnings. The end of year NAV was $24.75. What was your annual
rate of return on this investment?
A) -4.00 percent
B) -1.96 percent
C) 10.80 percent
D) 14.20 percent
E) 16.90 percent
104) A mutual fund has a current offering price of $35.70. What is the net asset value if the fund
charges a 3.75 percent front-end load?
A) $30.74
B) $31.66
C) $34.36
D) $34.86
E) $34.91
105) You invested $7,000 in a mutual fund 28 months ago when the NAV of the fund was
$22.30. You have not acquired or sold any shares since that time. Today, the NAV is $21.50.
The fund charges a contingent deferred sales charge of 6, 5, 4, 3, 2, 2, and 1 percent if the shares
are redeemed within the first 7 years, respectively. How much money will you receive if you
redeem your shares today?
A) $6,178.86
B) $6,275.23
C) $6,355.00
D) $6,478.92
E) $6,508.91
106) Five years ago, you purchased 220.80 shares of a mutual fund. Since then, you have
reinvested your fund dividends and acquired an additional 35.10 shares. The fund currently has
an NAV of $37.60. The fund charges a contingent deferred sales charge of 5 percent for the first
2 years after which time the charge declines by 1 percent a year. How much money will you
receive if you redeem all of your shares today?
A) $9,360.32
B) $9,429.40
C) $9,510.18
D) $9,633.75
E) $9,700.79
107) The Emerging Fund is a new closed-end fund which just offered its shares to the public.
The fund raised $75 million and each share sold for $20. The fee for the fund promoter was 4.80
percent of the initial proceeds. What was the value of your initial $20,000 purchase before the
shares began trading in the marketplace?
A) $18,430
B) $18,708
C) $19,040
D) $20,000
E) $20,735