A Key Figure to Look for in Assessing a Mutual

question 171

True/False

A key figure to look for in assessing a mutual funds fees is the expense ratio found in the standardized expense table in the prospectus.

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Definitions:

Cash

Money in the form of coins or banknotes, especially that held by a person or business.

Stock Investments

Financial assets referring to shares purchased in other companies intended for income generation or capital gains.

Cost Method

An investment accounting approach where the investment is recorded at cost and adjusted only for dividends received, not market value changes.

Equity Method

An accounting technique used by a company to record its investment in another company based on the equity it holds in that company.