The Management Expense Ratio (MER) Is a Ratio of Fees

question 6

Multiple Choice

The management expense ratio (MER) is a ratio of fees charged to the:

• A) book value of assets under management.
• B) market value of assets under management.
• C) unit price of the fund.
• D) none of the above.

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Definitions:

Compounded Quarterly

The practice of adding interest to the principal sum of a deposit or loan on a quarterly basis, thereby earning interest on interest.

Final Payment

The last payment in a series that completes the payment obligation.

Interest

The fee paid for borrowing money, typically a percentage of the principal, or the earnings from investment.

Equivalent Value

The value of one thing in terms of another, especially after considering different factors or conditions.