There Are Two Types of Costs Borne by Investors in Mutual

question 12

Multiple Choice

There are two types of costs borne by investors in mutual funds: the first cost is the shareholder fee and the second cost is the annual fund operating expense. Which of the below descriptions relate to the second cost?

• A) the expense ratio, which covers the fund's expenses and occurs on all funds
• B) the "one-time" charge debited to the investor for a specific transaction
• C) the charge based on the way the fund is sold or distributed
• D) the charge that covers the purchase, redemption, or exchange.

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