You Are Going to Invest in the AIC Stock Fund

question 40

Multiple Choice

You are going to invest in the AIC Stock Fund that has A, B, and C share classes. All share classes have a thirty basis point management fee. The A shares have a five percent front-end load and no annual administrative fee. The B shares have a three percent back-end load and a seventy-five basis point annual administrative fee. The C shares have no load and a one hundred basis point annual administrative fee. If your investment horizon is thirty years, the ___________ shares would be the best alternative.

• A) A
• B) B
• C) C
• D) All are the same.
• E) Insufficient information.

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Definitions:

Chemical Weathering

The breakdown of rocks and minerals through chemical reactions with substances in the environment, like water, oxygen, and acids.

Critical Factor

An essential element or condition required for a process or outcome to occur, often determining success or failure.

Gentle Slopes

Slopes with a gradual incline, typically found in landscapes where erosion has smoothed the terrain over time.

Discontinuities

Interruptions or breaks in the physical continuity or uniformity of a geological structure, such as faults or joints.