The Average Management Fee for All Mutual Funds Is

question 6

Multiple Choice

The average management fee for all mutual funds is:

• A)less than 0.25 percent.
• B)0.25 percent to 0.50 percent.
• C)0.50 to 1 percent.
• D)1.25 to 2.50 percent.
• E)2.50 to 5.00 percent.

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Definitions:

Lump Sum

A single payment made at a particular time, as opposed to several smaller installments.

Future Value

The value of an investment at a specified date in the future that accounts for a specified rate of interest or rate of return.

Interest Rate

The amount charged by a lender to a borrower for the use of assets expressed as a percentage of the principal.

Trust Fund

A legal entity set up to hold property or assets for the benefit of another party, often managed by a trustee.