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:

Intermediate Difficulty

Refers to tasks or challenges that are of a moderate level of complexity, neither too easy to solve without effort nor too difficult to be solved at all.

Sense of Accomplishment

The feeling of pride and fulfillment that comes from successfully completing a task or challenge.

Achievement Situation

A scenario in which an individual's ability or competence is measured, often invoking performance anxiety or motivation to succeed.

Incentive Value of Success

The motivational significance or attractiveness of achieving success in a particular endeavor.