Regarding Load and No-Load Mutual Funds

question 83

Multiple Choice

Regarding load and no-load mutual funds,

• A) load funds usually outperform no-load funds.
• B) no-load funds perform at least as well as load funds even when the fees are ignored.
• C) the two types of funds perform about the same considering the fees.
• D) load funds may be bought directly, whereas no-load funds must be purchased through a broker.

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Definitions:

Federal Income Tax

A tax levied by the federal government on an individual's or corporation's annual income.

Withholding Allowance

A provision allowing employees to reduce the amount of income tax withheld from their paycheck, based on their personal allowances and deductions.

Gross Earnings

Total income earned by an individual or entity before any deductions or taxes.

Withholding Allowance

A claim made by employees on their W-4 form indicating their tax situation to employers, affecting the amount of federal income tax withheld from their paychecks.