1. Each of the following is true of Mutual Funds EXCEPT

A. Funds can be classified as load or no-load funds.

B. Mutual Fund shares must be bought from or sold to the Fund by investors.

C. An index fund is the fund with the highest expenses payable by investors.

D. D. The NAV is the total value of stock held by the fund divided by the number of outstanding shares in the mutual fund.

2. A sole proprietorship is the most desirable business form in all circumstances.

True

False

3. Venture capital funds play an important role in the initial financing of new businesses.

True

False

4. Primary markets are always larger than secondary markets.

True

False

5. If one security has a greater risk than another security, how will investors respond?

They will require a lower rate of return for the investment that has greater risk.

They would be indifferent regarding their expectation of rates of return for either investment.

They will require a higher rate of return for the investment that has greater risk.

None of these.