Which of the Following Is Not a Withdrawal Option for a Mutual

question 93

Multiple Choice

Which of the following is not a withdrawal option for a mutual fund?

• A)The investor may withdraw a specified, dollar amount each investment period.
• B)The investor may liquidate or "sell off" a certain number of shares each investment period.
• C)The investor can withdraw a fixed percentage of asset growth.
• D)The investor can withdraw all income that results from interest, dividends, and capital gains earned by the mutual fund during an investment period.
• E)The investor must wait five years, and then can withdraw 10 percent of the asset growth each year until the fund is exhausted.

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Definitions:

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Fixed Costs

Expenses that do not change with the amount of goods or services produced by a business.

Sunk Costs

Sunk costs refer to expenses that have already been incurred and cannot be recovered, and therefore should not affect future business decisions.

Opportunity Costs

The missed opportunity to benefit from different options when a single choice is made.