The Difference Between a Load Fund and a No-Load Fund

question 89

Multiple Choice

The difference between a load fund and a no-load fund is that

• A)load funds invest in a variety of securities while no-load funds limit their investments to common stocks.
• B)load funds borrow money to increase their portfolio,while no-load funds do not.
• C)you buy no-load funds at their net asset values,but you pay more than net asset value when you buy load funds.
• D)no-load funds can be purchased anywhere,but load funds must be purchased through a stockbroker.

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Definitions:

Convergent Validity

Convergent validity is the extent to which two measures of constructs that theoretically should be related, are in fact related.

Cronbach's Alpha

A measure of internal consistency that assesses how closely related a set of items are as a group, often used in survey research.

Internal Consistency

A measure of the reliability of a psychological test that assesses the extent to which different test items that propose to measure the same general construct produce similar results.

Cohen's Kappa

Cohen's Kappa is a statistical measure used to assess the reliability of inter-rater agreement for qualitative (categorical) items, correcting for the chance of agreement.