True and False

Question 1 

Managers of the Black Rock Small Cap Growth Equity Fund believe that the stock market is perfectly efficient. This explains their investment strategy. 

 Question 2 

As of May 2014 the Black Rock Small Cap Growth Equity Fund owned over 300 different financial assets. It is a well-diversified fund. 

 Question 3 

Managers of the Black Rock Small Cap Growth Equity Fund base stock selection on technical analysis. 

 Question 4

Managers of the Black Rock Small Cap Growth Equity Fund are prohibited from using derivatives to enhance the performance of the fund because derivatives can only increase risk. 

 Question 5

As of May 2014 over 85% of the Black Rock Small Cap Growth Equity Fund’s exposure was to North American companies. 

 Question 6 

As of May 2014 the largest holding of the Black Rock Small Cap Growth Equity Fund represented 6% of the value of the fund’s shares. 

 Question 7 

As of the first quarter of 2014 the top ten holdings of the Black Rock Small Cap Growth Equity Fund included Facebook, Twitter and Google. 

 Question 8 

Over the last ten years the average annual rate of return of the Black Rock Small Cap Growth Equity Fund when sales charges are taken into account exceeded the ten year average annual rate of return of the Russell 2000 Growth Index. 

 Question 9 

Managers of the Black Rock Small Cap Growth Equity Fund invest small amounts in the components of the Dow Jones Industrial Average. 

 Question 10 

The Black Rock Small Cap Growth Equity Fund is actively managed. 

 Question 11 

In 2008 the annual return of the Black Rock Small Cap Growth Equity Fund was negative 40.08%. 

 Question 12 

The investment approach of the managers of the Black Rock Small Cap Growth Equity Fund is to randomly select shares from the Russell 200 Growth Index and leverage the investments using options. 

 Question 13 

The ANNUAL EXPENSES (%OF ASSETS) of the Black Rock Small Cap Growth Equity Fund are between 4% and 5%. 

 Question 14 

The fees associated with an investment in the Black Rock Small Cap Growth Equity Fund have a larger effect on returns the shorter you hold the shares.

 Question 15 

The Beta of the Black Rock Small Cap Growth Equity Fund is 1.08 and the Beta of the fund’s benchmark is 1