You Invest in a Mutual Fund That Charges a 3

question 29

Multiple Choice

You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees, and a 0% back-end load on Class A shares. The same fund charges a 0% front-end load, 1% total annual fees, and a 2% back-end load on Class B shares. What are the total fees in year 1 on a Class A investment of $20,000 with no growth in value?

• A) $658
• B) $794
• C) $885
• D) $902

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Definitions:

Storage Failure

The inability to retain information in long-term memory, resulting in forgetting or memory loss.

Motivated Forgetting

A theory suggesting that individuals may unconsciously forget memories which are troubling or traumatic.

Repression

A defense mechanism in which distressing thoughts, memories, or desires are excluded from conscious awareness.

Encoding Failure

A phenomenon where the brain fails to create a memory link to information, leading to its forgetting.