Norma Rose Is Buying Shares in a Mutual Fund That

question 63

Multiple Choice

Norma Rose is buying shares in a mutual fund that only invests in companies from countries other than the United States. What type of mutual is she buying?

• A) Aggressive growth fund
• B) Equity income fund
• C) Global fund
• D) International fund
• E) Regional fund

---

Definitions:

Dividend Per Share

The amount of dividend that a company pays out over a year divided by the total number of its outstanding shares.

Earnings

The net amount of money a company earns during a specific period, often reported quarterly or annually, indicating its profitability.

Market-capitalization Rate

A valuation ratio determined by dividing the market capitalization of a company by its after-tax earnings, reflecting how much investors are willing to pay for a share of the company's earnings.

Plowback Ratio

The proportion of earnings retained by a company for reinvestment in its operations rather than being paid out as dividends to shareholders.