Which Type of Fund Generally Has the Lowest Average Expense

question 4

Multiple Choice

Which type of fund generally has the lowest average expense ratio?

• A) actively managed bond funds
• B) hedge funds
• C) indexed funds
• D) actively managed international funds

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Definitions:

Cash Disbursements

The payments a company makes during a period, including expenses, debt payments, and purchase of assets.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs associated with maintenance, utilities, and quality control.

Fixed Selling Expenses

Fixed selling expenses are those costs associated with selling a product that do not change with the level of production or sales, such as salary of sales staff and rent for office space.

Administrative Expenses

Administrative expenses are the costs associated with the general administration of a business, such as salaries of office staff, utilities, and rent.