Many Financial Planners Recommend That You Choose a Mutual Fund

question 31

Multiple Choice

Many financial planners recommend that you choose a mutual fund with an expense ratio of:

• A)1 percent or less
• B)2 percent or less
• C)3 percent or less
• D)4 percent or less
• E)5 percent or less

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Definitions:

Equal To Zero

A state or condition where a value, quantity, or balance is zero.

Price-Elasticity Coefficient

A measure showing the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.

Midpoint Formula

A method used to calculate the elasticity of demand or supply by dividing the percentage change in quantity demanded or supplied by the percentage change in price, using the average of the initial and final values.