What costs are incurred by an investor when purchasing a mutual fund?
What will be an ideal response?
As noted in the previous problem, a mutual fund may have a multi-class structure that gives the investor an option to select a fee and expense structure that the investor prefers. For example, a multi-class structure could have Class A shares, Class B shares, and Class C shares. Relative to other mutual fund classes in the structure, Class A shares have a front-end sales load but a lower 12B-1 fee and lower annual expenses. No front-end sales load is typically charged for Class B shares, but there is a contingent deferred sales load as well as a 12b-1 fee and other annual expenses. Class C shares have a 12b-1 fee and other annual expenses. The sales load is either a front-end or back-end sales load but it is lower than the Class A and Class B shares. As explained in the previous problem, each investor has to examine the fee choices along with their investment horizon to determine which class would have cheaper expenses given their time frame.
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Networks are mutually beneficial alliances that are generally governed by the law of
A. Reciprocity. B. Supply-demand. C. Risk-reward. D. Brooks' law. E. A squeaky wheel.
________ is a comparative scaling technique in which a respondent is presented with two objects at a time and asked to select one object in the pair according to some criterion. The data obtained is ordinal in nature
A) Constant sum B) Q-sort C) Paired comparison D) Rank order
Milltown Company sells used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership's total sales variance for the month.
A. $32,000 favorable. B. $22,000 unfavorable. C. $32,000 unfavorable. D. $22,000 favorable. E. $10,000 favorable.
Factors that lead to worsening conditions in financial markets include
A) increases in interest rates. B) declining stock prices. C) increasing uncertainty in financial markets. D) all of the above. E) only A and B of the above.