If an Investor Purchases a No-Load Fund, She or He

question 38

Multiple Choice

If an investor purchases a no-load fund, she or he:

• A) Is never subject to a management fee
• B) Could be subject to a front-end commission
• C) Could be subject to 12b-1 fees
• D) Would expect a higher return since no-loads generally pay better rates than load funds
• E) C and D

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Definitions:

Functional Areas

Specific sectors or departments within an organization, each focusing on particular tasks, responsibilities, and expertise to achieve business objectives.

Direct Interaction

The immediate and straightforward engagement between two or more entities or between humans and technology without intermediaries.

Systems Requirements

The technical specifications and conditions defined for a system to achieve its objectives, including functional, performance, and operational requirements.

Analysis Stage

A phase in the problem-solving process or project development where data is carefully examined and interpreted to guide decision-making.