You Are Considering Purchasing Shares in a Typical Mutual Fund

question 14

Multiple Choice

You are considering purchasing shares in a typical mutual fund that has three classes of shares outstanding: Class A,Class B,and Class C. If you purchase Class C shares,you will pay

• A)a back-end load and no 12b-1 fees.
• B)a front-end load and a small 12b-1 fee,but eventually your shares will be converted to Class A shares.
• C)no front-end load but a back-end load.
• D)a back-end load and full 12b-1 fees.
• E)a front-end load and full 12b-1 fees.

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Definitions:

Deci-

A prefix denoting a factor of one-tenth in metric units of measure.

0.1

A decimal number representing one-tenth, highlighting the concept of division in the decimal system.

Centi-

A prefix in the metric system denoting one hundredth (1/100) of a unit.

1/100

A numerical representation often used to denote one percent or a fraction of a whole.