Which of the Following Refers to an Annual Fund Marketing

question 86

Multiple Choice

Which of the following refers to an annual fund marketing expense that is passed on to the shareholders in the mutual fund?

• A) Sales load.
• B) No-load.
• C) 12b-1 fee.
• D) Expense ratio.

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Definitions:

Double Digit Yields

Interest or dividend rates that are in the double digits percentage-wise, indicating high returns on investment but typically with higher risk.

Single Digit Returns

Single digit returns refer to the percentage gain or loss on an investment that is less than ten percent, indicating a low to moderate performance.

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its price.

Default Risk

The possibility that a borrower will fail to meet the obligations of a loan agreement.