問題一覧
1
When evaluating a mutual fund for possible investment, you must examine the total return in three ways:
1. Review the fund's return over three or more years to see how it has performed during various bull and bear market cycles. 2. Compare the fund's returns for the period to those of other funds with the same investment objective or in the same style category. 3. Compare the fund's returns to an appropriate benchmark index for the same period.
2
If you are investing in a fund to generate money for living expenses, _____ is the most important factor to consider.
income return
3
____ is a component of a fund's total return. It measures a fund's investment income i.e., dividends and interest distributions) against its _____.
income return, NAV
4
A note of caution. Do not ignore a fund's ____ when you are investing for income.
volatility
5
Often your accompanying (and unspoken) objective is preservation of capital. You do not want to see the money you've invested in a fund _____ in value.
decrease
6
Indeed, a large _______ may cushion you against the decrease in the price of any single ____ or ____ in the fund's portfolio.
diversified fund, security or sector
7
The degree to which a mutual fund's investors are ____, however, depends on the amount of money the _____ has invested in a particular security or sector.
cushioned, portfolio manager
8
the risk that a decline in the overall market will adversely affect the total market value of a portfolio of securities.
systematic risk
9
A portfolio manager employs one of three basic investment styles, either ____ or in _____
alone or in combination
10
when analyzing and selecting stocks to add to or sell out of a mutual fund's portfolio. They are ______, _______, and ________
value investing, growth investing, and core investing
11
A portfolio value manager invests in the common stock of companies whose current market value appears to be below the company's real worth or earnings power, or below the value of comparable companies in the same business sector. In short, the shares are thought to be a bargain.
Value Investing
12
A portfolio manager who uses the _____________ approach selects a potential company based on expectations of strong growth in earnings. The underlying belief is that if a company's earnings growth meets or, more importantly, exceeds analysts' expectations, then the price of the common stock will appreciate.
growth investing
13
The portfolio manager selects the majority of the securities that make up the mutual fund's holdings so that they are aligned with the performance of a specified index. Then the manager tries to produce total returns that exceed those of the specified benchmark index.
core investing
14
investment risks
currency risk, country risk, interest rate risk
15
Also called foreign exchange risk, this is risk resulting from the change in the value of a particular currency relative to the U.S. dollar (or any other currency).
currency risk
16
This risk results from concentrating too much of a mutual fund's asset in a particular country. Such concentration increases a mutual fund's exposure to that country's currency fluctuations, economic risk, and political risk, all of which can cause the price of shares on the local stock exchanges to plummet or skyrocket.
country risk
17
The market prices of bonds move opposite to interest rate changes. As interest rates rise, bond prices decline; as interest rates fall, bond prices interest rate risk the risk that an increase in interest rates will result in lower bond prices
interest rate risk
18
potfolio composition
• A mutual fund's annual report lists all of the securities in the fund's portfolio at the time it was published. It is important to review this list because it indicates how a manager interprets a fund's investment objective. • If the portfolios of the funds are too similar, you may not be as diversified as you think. In fact, you may be too concentrated in a narrow group of stocks. This increases your risk that if these stocks decline, all of the different funds you own would be adversely affected. • When making this comparison, get information that is as current as possible. If the same stocks are showing up in several of your mutual fund portfolios, it may be time to redeem some of those funds and diversify by adding new ones.
19
A mutual fund's annual report lists all of the _______ in the fund's portfolio at the time it was published. It is important to review this list because it indicates how a manager interprets a fund's ______.
securities, investment objective
20
If the portfolios of the funds are too _____, you may not be as diversified as you think. In fact, you may be too concentrated in a narrow group of stocks. This increases your risk that if these stocks decline, all of the different funds you own would be _____________.
similar, adversely affected
21
When making this comparison, get information that is ___________. If the same stocks are showing up in several of your mutual fund portfolios, it may be time to redeem some of those funds and diversify by adding ______.
as current as possible, new ones
22
(less than _____ percent) is characteristic of a fund whose manager employs a buy-and-hold strategy. If the fund manager is buying and selling the appropriate securities at the appropriate times, the fund can maximize its return regardless of a high turnover rate. If the fund's performance is poor and the turnover rate is high, it usually indicates a problem-usually with the manager's selection process.
low turnover rate, 30 percent
23
The _______ measures how often an investment manager changes the total holdings in a fund's portfolio over ____. In short, it indicates how frequently a manager trades. A turnover rate of _____ means that the manager changes the entire portfolio of securities once during the year.
turnover rate, a year, 100 percent