You Are Considering Purchasing Shares in a Typical Mutual Fund

question 11

Multiple Choice

You are considering purchasing shares in a typical mutual fund that has three classes of shares outstanding: Class A,Class B,and Class C. If you purchase Class C shares,you will pay

• A)a back-end load and no 12b-1 fees.
• B)a front-end load and a small 12b-1 fee,but eventually your shares will be converted to Class A shares.
• C)no front-end load but a back-end load.
• D)a back-end load and full 12b-1 fees.

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Definitions:

MIGA

The Multilateral Investment Guarantee Agency, part of the World Bank Group, that offers political risk insurance to companies investing in developing countries.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its market cost or below the production cost, often to increase market share or drive out competition.

Multilateral Investment Guarantee Agency

An international financial institution that offers political risk insurance and credit enhancement to investors and lenders to encourage investment in developing countries.

World Bank

A global financial organization that offers loans and grants to less wealthy nations to help them undertake capital projects.