Open End Mutual Funds May Charge Which of the Following

question 69

Multiple Choice

Open end mutual funds may charge which of the following fees?
I. A front-end load at the time of purchase.
II. A back-end load when shares are sold.
III. Annual fees based on marketing and distribution costs.
IV. Annual performance fees up to 20% of increases in net asset value.

• A) I, II and IV only
• B) I, II, and III only
• C) I, III and IV only
• D) I, II, III and IV

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Definitions:

Parallel Circuit

An electrical circuit in which the components are connected in parallel, providing multiple paths for the current.

Phase Angle

A measurement, often in degrees or radians, indicating the difference in phase between two waveforms.

Parallel Circuit

An electrical circuit configuration where components are connected alongside each other, leading to the same voltage across all components but different current through each.

Inductive Reactance

The opposition that inductors present to current change in AC circuits, measured in Ohms.