Which of the Following Is a Reason for Selecting a Mutual

question 28

Multiple Choice

Which of the following is a reason for selecting a mutual fund?

• A)avoidance of market risk
• B)high tax efficiency
• C)charging 12b-1 fees instead of load fees
• D)often realizing portfolio gains

---

Definitions:

Journal Entry

A record of a financial transaction in the accounting books of a business or organization.

DR (Debit)

DR, or Debit, represents the left side of a general ledger account and is used to record increases in assets or expenses and decreases in liabilities, equity, and income.

CR (Credit)

An accounting entry that decreases assets or increases liabilities and equity on a company's balance sheet, reflective of the double-entry bookkeeping system.

Tax Expense

The total amount of taxes a company incurs, reflecting both current taxes due and future tax liabilities.