The Average Upfront Sales Charge for a No-Load Mutual Fund

question 59

Multiple Choice

The average upfront sales charge for a no-load mutual fund is

• A) 0%.
• B) 2%.
• C) 3-5%.
• D) 8.5%.
• E) 11.5-14.5%.

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Definitions:

Cost of Equity

The return a company theoretically pays to its equity investors as a reward for taking on the risk of investing in the company.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

After Tax Cost

The actual cost of an investment or purchase after accounting for the effects of taxes on the price.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.