Which of the Following Is True About MERs

question 48

Multiple Choice

Which of the following is true about MERs?

• A)MERs only include manager and sales expenses.
• B)Mutual funds with lower MERs tend to outperform those with higher.
• C)All types of mutual finds have similar MERs.
• D)You need to subtract the MER from the posted return to figure out performance.

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Definitions:

Issuing Bonds

The act of a corporation or government borrowing money from investors by selling debt securities, known as bonds, which promise to repay the principal along with interest on specified dates.

Leasing Agreement

A contract where one party agrees to rent property owned by another party for a specified time period in exchange for payment.

Capital Markets

Financial markets in which long-term debt or equity-backed securities are bought and sold, serving as a platform for raising capital.

Long-Term Bonds

Bonds that are due for payment or redemption at a date more than ten years in the future, often offering a higher yield due to the increased risk.