Which of the Following Statements Regarding Fund Expenses and Performance

question 63

Multiple Choice

Which of the following statements regarding fund expenses and performance is true?

• A)The higher-performing funds generally have the highest expenses.
• B)The stock funds generally have higher expenses than bond funds.
• C)The index funds generally have higher expenses than non-index funds.
• D)The lower performing funds generally have the highest expenses.

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Definitions:

Revamping

The process of redesigning or restructuring something to improve its appearance, efficiency, or effectiveness.

Trialability

The extent to which a potential customer can examine the merits of a new product without having to spend a lot of money or time doing so.

Return-On-Investment

A financial metric used to measure the likelihood of gaining a return from an investment relative to its cost.

Time Constraints

The limitations on the amount of time available to complete a task or project.