Chapter 7

Question 1

The extent to which the price of a closed end investment company’s stock is below its net asset value

Answer 1

Discount ( from net asset value)

Question 2

The extent to which the price of a closed end investment company’s stock exceeds the shares net asset value

Answer 2

Premium (over net asset value)

Question 3

A passive investment company with a fixed portfolio of assets that are self-liquidating

Answer 3

Unit trust

Question 4

Closed-end investment company that specializes in real estate or mortgage investments

Answer 4

Real estate investment trust (REIT)

Question 5

A real estate investment trust that specializes in acquiring real estate for subsequent income

Answer 5

Equity trust

Question 6

A real estate investment trust that specializes in loans secured by real estate

Answer 6

Mortgage trust

Question 7

Mutual funds whose portfolios include securities of firms with international operations that are located throughout the world

Answer 7

Global funds

Question 8

American mutual funds whose portfolios are limited to non-American firms

Answer 8

International funds

Question 9

Mutual funds in a particular geographical area

Answer 9

Regional funds

Question 10

Investment company that specializes in securities from less developed countries

Answer 10

Emerging market fund