Orion 65 Section 7

Which of the following statements about the redemption of mutual fund shares are TRUE?

A mutual fund will redeem fractional shares as well as full shares. Redemptions of mutual fun shares are handled under forward pricing.

An investor interested in obtaining the benefit of professional portfolio management has been tracking a particular investment company for the past several months. In so doing, it becomes obvious that the market price of the shares moves in direct relation to the computed NAV. This investor must be following?

An open-end fund

Investment company portfolio managers are apt to classify common stocks into groups. One measurement is the product of multiplying the market price per share times the number of shares outstanding. The result is known as?

Market capitalization

A review of the prospectus of an open-end investment company reveals that its portfolio consists entirely of CDs, Treasury bills and repurchase agreements. This is probably a?

Money Market Fund

An open-end investment company is also referred to as a?

Mutual Fund

According to the Investment Company Act of 1940, an open-end investment company must compute its NAV?

No less frequently than once per day