Which One of the Following Costs Can a Mutual Fund

question 10

Multiple Choice

Which one of the following costs can a mutual fund shareholder avoid by holding shares for an extended period of time?

• A)12b-1 fee
• B)front-end load
• C)management fee
• D)contingent deferred sales charge
• E)trading costs

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Definitions:

Economic Thinking

A method of evaluating issues and making decisions based on the principles of economics, such as cost-benefit analysis, scarcity, and opportunity cost.

Marginal Change

A small, incremental adjustment to an existing set of conditions or a decision.

Incremental Adjustment

A small, step-by-step change or modification made in order to improve a system or process.

Significant Adjustment

describes a major change or modification in operations, policies, or strategies, typically in response to external or internal factors.