Most Mutual Funds Are Structured in Two Ways

question 9

Multiple Choice

Most mutual funds are structured in two ways.The most common structure is a(n) ________ fund,from which shares can be redeemed at any time at a price that is tied to the asset value of the fund.A(n) ________ fund has a fixed number of nonredeemable shares that are traded in the over-the-counter market.

• A) closed-end; open-end
• B) open-end; closed-end
• C) no-load; closed-end
• D) no-load; load
• E) load; no-load

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Definitions:

Random Sampling

A method of selecting a sample from a statistical population in which every individual has an equal chance of being chosen.

Genetic Equilibrium

A state in a population where allele frequencies remain constant over time, assuming no evolutionary influences.

Allele

Different versions of a gene, known as alleles, result from mutations and exist at the identical location on a chromosome.

Genotype Frequencies

The proportion of different genetic variants (genotypes) within a population.