In Order to Maximize Returns, an Investor Should Stick to Investing

question 20

True/False

In order to maximize returns, an investor should stick to investing in load funds instead of no-load funds.

---

Definitions:

Contribution Margin Ratio

The contribution margin ratio quantifies the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs and generate profit.

Variable Costs

Costs that change in proportion to the level of activities or volume of production in a business.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume.

Sales

Transactions between a seller and a buyer where the seller provides goods, services, or assets in exchange for money or other compensation.