What Information Can an Investor Find in the Prospectus of a Mutual

question 135

Multiple Choice

What information can an investor find in the prospectus of a mutual fund?

• A)The fund's goal and investment strategy
• B)The fund manager's past experience
• C)The fund's 12b-1 fees
• D)All of the above are correct.
• E)Only A and B are correct.

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, no barriers to entry, and a homogeneous product.

Long Run

A period in economics where all factors of production and costs are variable, allowing for full industry adjustment.

Economic Profits

The disparity between a company's overall income and the sum of its explicit and implicit expenses.

Accounting Profits

The net income of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues, according to standard accounting practices.