By Martin Krikorian

How much do you know about mutual funds? You can find the answers to the following questions on our website, www.capitalwealthmngt.com.

1. A mutual fund's expense ratio represents all of the costs associated with owning a mutual fund.

a. True

b. False

2. Which fund family has the lowest average mutual fund expenses?

a. American Funds

b. Vanguard

c. Fidelity

3. According to Morningstar, what is the best predictor of a mutual fund's future performance?

a. A fund's past performance

b. A fund's expense ratio

c. A fund's star ratings

4. Duration is a measure of a bond fund's sensitivity to _______.

a. Inflation

b. Interest rates changes

c. Stock market volatility

d. None of the above

5. All things being equal, which type of bond fund would suffer the biggest loss if interest rates rise?

a. Short-term bond funds

b. Intermediate-term bond funds

c. Long-term bond funds

6. Which asset category of mutual funds has had the highest average return from 1926-2017?

a. Large growth stocks

b. Large value stocks

c. Small growth stock

d. Small value stocks

7. In what year was the first U.S. mutual fund created?

a. 1924

b. 1945

c.


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1967

Martin Krikorian is president of Capital Wealth Management, a "fee-only" registered investment adviser located at 9 Billerica Road, Chelmsford. He is the authors of the investment books, "10 Chapters to Having a Successful Investment Portfolio" and the "7 Steps to Becoming a Better Investor." Martin can be reached at 978-244-9254, Capital Wealth Management's website, www.capitalwealthmngt.com, or via email at info@capitalwealthmngt.com.