-Refer to Figure 5-2 Above

question 42

Multiple Choice

-Refer to Figure 5-2 above.When moving from point B to C on the graph,the economy is going through a(n)

• A) peak
• B) trough
• C) expansion
• D) downturn
• E) recession

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Definitions:

Front-end Load

A charge or fee paid by an investor at the time of purchasing shares of a mutual fund or an investment, typically used to cover sales commissions.

Expense Ratio

The annual fee that all mutual funds and ETFs charge their shareholders, expressed as a percentage of the fund's average net assets.

NAV

Net Asset Value, the per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Front-end Load

A commission or sales charge applied at the time of the initial purchase of an investment, usually used in mutual funds.