1. owning mutual funds enables the investor to receive all of the following except :

a. any service offered by the fund

b. professional management service and advise

c. diversification of investments

d. control over the investment portfolio

2. two mutual funds were recently quoted as follows :

Philadelphia fund BID 7.73 ASK 7.73

Pittsburgh Fund BID 11.09 ASK 11.09

Gives these quotes, which of the following are true:

Neither fund charges a commission

Pitsburg is a no load fund

Philadelphia is a no load fund

The information is not sufficient to determine the answer

3. if two variables do not have a strong (linear) relationship, the correlation coefficient between the two variables will be closest to :

a. 0

b. -1

c. +1

4. diversification can reduce portfolio risk only if the security return correlation is :

a. equal to +1

b. less than +1

c. zero

d. more than +1