You Invest in a Mutual Fund That Charges a 3

question 36

Multiple Choice

You invest in a mutual fund that charges a 3% front end load,1% total annual fees,and a 0% back end load on Class A shares.The same fund charges 0% front end load,1% total annual fees,and a 2% back end load on Class B shares.What are the total fees in year one on a Class A investment of $20,000 with no growth in value?

• A) 658
• B) 794
• C) 885
• D) 902

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Definitions:

M'Naghten Rule

A legal standard used to evaluate the criminal responsibility of a defendant deemed to be mentally disturbed.

Not Guilty

A legal judgment that asserts the defendant has not been proven to commit the offense they were charged with beyond a reasonable doubt.

Insanity

A legal and psychological term referring to a mental illness of such a severe nature that a person cannot distinguish fantasy from reality, or is unable to conduct her/his affairs due to psychosis, or is subject to uncontrollable impulsive behavior.

Tarasoff Case

A landmark legal case in the United States that established mental health professionals have a duty to warn individuals who are being threatened with bodily harm by a patient.