What Are the Primary Disadvantages of Owning Mutual Fund Shares

question 9

Essay

What are the primary disadvantages of owning mutual fund shares?

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit.

Predetermined Overhead Rate

A rate used to allocate indirect costs to products or services, estimated before the costs are incurred.

Direct Material

Raw materials directly used in the manufacturing of a product, explicitly traceable to the goods being produced.

Direct Labor

Labor costs directly tied to the production of goods or services, such as wages for assembly line workers.