In Addition to a Management Fee, Sally Pays a 1

question 76

Multiple Choice

In addition to a management fee, Sally pays a 1% fee on her mutual fund every year. The fee Sally is being assessed is most consistent with a:

• A) front-end load.
• B) 12b-1 charge.
• C) dealers bid/asked spread.
• D) brokerage commission.

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Definitions:

Common Average

The arithmetic mean or simple average of a set of values, calculated by summing them up and dividing by the number of values.

Variance

A statistical measure that represents the dispersion or spread of a dataset relative to its mean, indicating how far the data points are from the mean.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide an accurate description of the entire data set.

Least Precise

Describes the measurement or estimation with the highest degree of uncertainty or the lowest level of detail.