Trailing Commissions,management Expenses and Marketing Expenses Are All Part of the MER

question 65

True/False

Trailing commissions,management expenses and marketing expenses are all part of the MER of a mutual fund.

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Definitions:

Future Free Cash Flows

Estimates of the amount of cash that a company will generate in the future after paying for operating expenses and capital expenditures.

Share Price

The market price at which a share of a company's stock can be bought or sold on a stock exchange.

Securities Markets

Platforms or systems facilitating the issuance and trading of financial instruments, such as stocks and bonds, providing liquidity and helping in capital formation.

Unbiased Expectations

Unbiased expectations theory suggests that the future interest rates can be estimated by using the current long-term interest rates, assuming they are an unbiased predictor of future rates.