A Mutual Fund "Load" Refers to

question 23

Multiple Choice

A mutual fund "load" refers to

• A) the operating expenses charged against the assets.
• B) the sales commissions.
• C) the sum of the commissions paid for buying and selling the assets of the fund.
• D) the fees for the investment manager.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at that price.

Substitute Good

A product or service that a consumer can use in place of another to satisfy the same need or desire.

LRMC

Long-Run Marginal Cost, which refers to the change in total production costs that comes from producing one additional unit of a good or service when all inputs are variable.

SRMC

Short-Run Marginal Cost (SRMC) is the cost to produce one additional unit of output when some inputs are fixed.