Multiple choice

1. Investment funds provide investors all of the following except:

a. diversification.

b. contractual rate of return.

c. professional advice.

d. small minimum investment.

2. Investment funds

a. are adaptive organizations which have responded well to economic conditions and investor needs.

b. are slow to react to needs because of severe regulation.

c. have shifted from one investment fad to another without attending to investor needs.

d. serve the large institutional investor.

3. Unit investment trusts provide all of the following advantages to investors except:

a. diversification

b. professional organization and investment selection

c. no-load mutual fund

d. closed-end investment company.

4. “Qualified” pension plans would have an incentive to invest in all the following except

a. municipal bonds 

b. corporate bonds

c. preferred stocks 

d. mortgages