An Annual Fee Charged by a Number of Open-End Mutual

question 37

Multiple Choice

An annual fee charged by a number of open-end mutual funds that's supposed to be used to offset promotion and selling expenses is called the:

• A) management fee.
• B) back-end load fee.
• C) transaction fee.
• D) 12b-1 fee.
• E) low-load fee.

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Definitions:

Operating Income

The profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold from gross profit.

Investment Turnover

A measure of a company's ability to generate sales from its investments; calculated by dividing sales by average invested assets.

Profit Margin

The amount by which revenue from sales exceeds costs in a business, expressed as a percentage of total sales.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the initial cost of the investment.