SIE – Practice Test 16

Most mutual funds are open-end funds, meaning that:

1. Shares are priced according to market supply and demand
2. There is an unlimited number of shares that can be issued
3. There is a set number of shares that can be issued
4. Shares are priced according to the fund’s net asset value

XYZ mutual fund has net assets of $250 million and 5,000,000 shares outstanding. What is the fund’s net asset value (NAV)?

For Class A mutual fund shares, investors generally pay which of the following at the time of purchase?

If a firm has been a member for less than one year, then their mutual fund advertisements must be filed with FINRA:

Which of the following are TRUE about mutual fund disclosure requirements?

1. Holdings must be reported on a monthly basis
2. Funds have up to 14 days after the month ends to report their holdings
3. Holdings must be reported on a quarterly basis
4. Funds have up to 60 days after the fiscal quarter ends to report their holdings

Which of the following is TRUE about a closed-end fund whose shares are selling at a premium?

Hedge funds often follow a compensation structure known as “two and twenty” which refers to:

A hedge fund’s hurdle rate is defined as:

An investor purchases a put option that can be exercised at the price of $50, known as the option’s:

Preemptive rights:

1. Permit existing shareholders to maintain the share ratio they hold among all total shareholders
2. Are required
3. Give existing shareholders the right of first refusal to purchase additional new shares
4. Are optional