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:

Wrongful Act

An action that is illegal or immoral, potentially causing harm or damage to others.

Compensatory Damages

Financial compensation awarded to a plaintiff to reimburse actual losses, expenses, or harm sustained from an injury or breach of contract.

Type Of Contract

A classification based on the characteristics or terms that define legal agreements between parties.

Lost Profits

Potential earnings that were not realized due to a wrongful act or breach of contract.