Which of the Following Is a Weakness Associated with Mutual

question 22

Multiple Choice

Which of the following is a weakness associated with mutual funds?

• A)Overhead costs
• B)Tax
• C)Diversification
• D)Both a and b
• E)Both b and c

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Definitions:

Defined Contribution Plan

A retirement plan in which the employee, employer, or both make contributions on a regular basis, but the benefit received upon retirement depends on the plan's investment performance.

401k Plans

A retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out.

Employer Match

A contribution made by an employer to an employee's retirement plan, equal to a certain percentage of the employee's own contributions.

Return On Investment

A measure of the profitability and efficiency of investment, calculated by dividing net profit by the initial capital cost.