Which One of the Following Is True About Marketing Expenses

question 70

Multiple Choice

Which one of the following is true about marketing expenses or "12b-1" fees?

• A) are subtracted from funds assets each year.
• B) can be a maximum of 1% of average net assets per year.
• C) increase with higher portfolio turnover (commissions)
• D) All of the above is true.

---

Definitions:

Type I Error

The mistake of rejecting a true null hypothesis, or in other words, concluding that a difference or effect exists when it actually does not.

Decision Rule

A pre-determined guideline or criterion used to choose between multiple alternatives in the face of uncertainty, often based on statistical analysis.

P Value

The probability of observing the given result, or more extreme, by chance if the null hypothesis is true.

Critical Value

A threshold in hypothesis testing, which when exceeded or not met determines the outcome of the test, often leading to the rejection or acceptance of the null hypothesis.