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1. Mutual funds are smart investing vehicles because:
    You get guaranteed returns
    They are more tax efficient
    They make it easier to achieve a diversified portfolio
2. You should consider buying an aggressive growth fund if:
    You need to make money quick
    You are willing to leave your money in the fund for at least 10 years
    Your value funds are under-performing
3. The best way to achieve long-term growth along with steady income is with:
    Municipal bond funds
    Specialty funds that invest in REITs
    Growth and income funds
4. If you're scared of volatility, you should stick with:
    Long-term U.S. government bond funds
    Short- and intermediate-term bond funds
    High-yield bond funds
    Municipal bond funds
5. Even though they tend to have low yields, municipal bond funds can be a good deal because:
    The local projects they invest in have high profit potential
    Interest is exempt from federal taxes
    Muni fund managers tend to trade more, generating high returns
6. When evaluating a fund, you should consider its:
    Expense ratio
    The consistency of its investment strategy
    Its returns relative to similar funds
    All of the above
7. Sell a fund if:
    Returns don't beat the performance of the S&P 500 for more than two quarters in a row
    There's been a manager change
    It under-performs similar funds by a substantial margin for two years.
    All of the above
8. What the key reason index funds have tended to outperform actively managed funds?
    Low expenses
    Most fund companies don't have adequate research departments
    Indexes are constructed in a way that ensures their outperformance