Regarding Load and No-Load Mutual Funds

question 61

Multiple Choice

Regarding load and no-load mutual funds,

• A)load funds usually outperform no-load funds.
• B)no-load funds perform just as well as load funds when the fees are ignored.
• C)the two types of funds perform about the same considering the fees.
• D)load funds may be bought directly,where no-load funds must be purchased through a broker.

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Definitions:

Liquidity

The facility to convert an asset into cash seamlessly without impacting its market rate.

Conceptual Framework

A set of concepts and ideas that guide the development, preparation, and interpretation of financial statements for external users.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and regulators.

Accounting Information

The data related to the financial transactions and status of a business that is used for reporting purposes.