When picking a mutual fund, you should choose a fund with a front or back-end load in order to reduce costs. True FalseWhile not all mutual funds have loads or commissions, they all have management fees and expenses that are charged to the mutual fund shareholders. True FalseThe ________ is the market value of the securities that a mutual fund has in its portfolio.book valuenet asset valuegross asset valuenet worth valueWhich of the following is not a true statement about mutual funds?All have a minimum investment required.All have the same investment goals.The calculation of net asset value is the same.All have a management expense ratio.A mutual fund has a beginning balance of $100 million, earns interest of $10 million, receives dividends of $15 million, and has expenses of $5 million. If 10 million shares are outstanding, what is the NAV?$10.50$11.00$12.00$12.50Passively managed index mutual funds tend to have lower expenses than actively managed mutual funds. True FalseWhich of the following funds would probably have the lowest risk and return?Large cap stock fundSmall cap stock fundGovernment bond fundLow quality (high yield or junk) bond fund________ funds are mutual funds that attempt to mirror the movements of existing broad market indicators.InternetStockIndexInternationalMutual funds that receive dividends and capital gains must distribute these to investors in the same year. True FalseEven bond mutual funds with little or no default risk have an interest rate risk. True FalseTreasury bond funds with short maturities have ________ default risk and ________ interest rate risk.high; lowhigh; highlimited; highlow; limitedFunds that performed well in one period of time will not necessarily perform well in the future. True FalseBecause a mutual fund is already diversified with perhaps 100 or more different investments, further diversification is not recommended or necessary. True FalseWhich of the following should be taken into consideration when assessing the quality of a fund’s manager?A.Management tenureB.Management ExperienceC.The manager’s adherence to the fund’s investment strategyD.All of the aboveMutual funds trade throughout the day like stocks, whereas exchange-traded funds (ETFs) trade only once at the end of the day. True FalseMost exchange-traded funds (ETFs) are actively managed. True False