Tests of Mutual Fund Performance Indicate That Funds with ______________

question 38

Multiple Choice

Tests of mutual fund performance indicate that funds with ______________ tend to have poorer performance.

• A) more funds in the family
• B) higher expense and turnover ratios
• C) lower management fees
• D) larger asset size

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Definitions:

Deemed Worthless

A term referring to assets that have become valueless and are recognized as a loss for tax purposes.

Long-Term Loss

A loss realized from the sale of an asset held for more than one year, which can offset long-term capital gains.

Short-Term Loss

A financial loss realized on the sale of an asset held for one year or less, used to offset capital gains and reduce taxable income.

Single Category Average

A measure that represents the average value within a specific, singular category of data.