Which of the Following Is True About the Differences Between

question 17

Multiple Choice

Which of the following is true about the differences between no-load mutual funds and load mutual funds?

• A) No-load funds invest in fewer types of investments than load funds.
• B) Load funds generally have fewer different stocks and bonds in their investment portfolio.
• C) Load funds charge a yearly management fee whereas no-load funds do not.
• D) No-load funds do not charge when you buy shares and load funds do.
• E) No-load funds have no charges for purchases, but fees are charged to sell them, and load funds have fees at the beginning and at the end.

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Definitions:

Returns

Returns denote the profit or loss derived from an investment over a certain period, expressed as a percentage of the investment's initial cost.

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, often used in finance to quantify the risk of an investment.

Normally Distributed

A statistical term describing a distribution of data where most of the observations cluster around the mean, forming a bell-shaped curve.

Annual Return

The percentage change in the value of an investment over a one-year period, including dividends, interest, and capital gains.