Conversion Privileges Allow Investors to Exchange One Fund's Shares for That

question 43

True/False

Conversion privileges allow investors to exchange one fund's shares for that of another,as long as the funds are in the same fund family.

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Definitions:

Double-Declining-Balance

An accelerated depreciation method that doubles the straight-line depreciation rate, reducing the asset's book value more quickly.

Straight-Line

A method of calculating depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal amount per year.