Which One of the Following Statements About Returns Reported by Mutual

question 32

Multiple Choice

Which one of the following statements about returns reported by mutual funds is not correct?

• A) Reported returns are net of management expenses.
• B) Reported returns are net of 12b-1 fees.
• C) Reported returns are net of brokerage fees paid on the fund's trading activity.
• D) None of these options. (All of the items are included in reported returns.)

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Definitions:

Labor

Labor represents the human effort, both physical and intellectual, used in the production of goods and services.

Maximize Utility

An economic principle where individuals or firms aim to achieve the highest satisfaction or profit from their choices.

Households

Units consisting of one or more people who live in the same dwelling and share meals or living accommodation; considered as a single entity for economic analysis.

Satisfaction

The feeling of fulfillment or pleasure derived from achieving a goal, satisfying a desire, or meeting a need.