You Are Considering Investing in One of Several Mutual Funds

question 68

Multiple Choice

You are considering investing in one of several mutual funds. All the funds under consideration have various combinations of front-end and back-end loads and/or 12b-1 fees. The longer you plan on remaining in the fund you choose, the more likely you will prefer a fund with a ________ rather than a ________, everything else equal.

• A) 12b-1 fee; front-end load
• B) front-end load; 12b-1 fee
• C) back-end load; front-end load
• D) 12b-1 fee; back-end load

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Definitions:

American Education

A system of formal learning in the United States, characterized by K-12 public schooling and a diverse higher education landscape.

Cultural Capital

The non-financial social assets that promote social mobility beyond economic means, such as education, intellect, style of speech, and dress.

Acquire

Acquiring involves obtaining or coming into possession of something, often through purchase, discovery, or transfer.

Self-Fulfilling Prophecies

are predictions or expectations that, merely by being made, influence behaviors to ensure they come true.