It’s time for a pop quiz – Lowell Sun

It’s time for a pop quiz. There are a few trick questions, so be sure to double check your answers. To see how successful you have been, you can find the answers in the “Investment Quiz” on our website at

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

a) Past performance of a fund

b) A fund’s expense ratio

c) A fund’s star ratings

2. Married couples cannot combine their IRA funds into a jointly funded joint IRA.



3. Index funds have outperformed ______ percent of all actively managed US mutual funds over the past 15 years.

a) 60

b) 75

c) 90

4. Duration is a measure of a bond fund’s sensitivity to ___.

a) Inflation

b) Changes in interest rates

c) Stock market volatility

All the foregoing

5. Under which of the following conditions would an individual not have to pay a 10% penalty for withdrawing contributions from his Roth IRA before age 59 1/2?

a) For their child’s college studies

b) If he has become disabled

c) To buy a new car

All the foregoing

e) A and B only

6. A mutual fund expense ratio represents all of the fees and expenses associated with owning a mutual fund.



7. Assets held in retirement accounts are distributed to beneficiaries according to the terms of a will.



Martin Krikorian, is Chairman of Capital Wealth Management, a registered investment adviser providing ‘pay only’ investment management services located at 9 Billerica Road, Chelmsford. He is the author of the investment books “10 Chapters to Have a Successful Investment Portfolio” and “7 Steps to Becoming a Successful Investor”. He can be reached at 978-244-9254, Capital Wealth Management website;, or by email at [email protected]

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