Click Submit to complete this assessment. stion 6 Which of the following stateme

Question

Click Submit to complete this assessment. stion 6 Which of the following statements concerning the Load (or "Sales Charge") paid on an open-ended load fund is not true? O a. Loads are necessarily paid in order to invest in the best funds. O b.If a fund has a sales charge (load") of three percent, it means that you will actually be paying more than three percent of your investment as co O c. Sales charges compensate only the sales person and his distribution system. It does not go to the manager of the fund, or into the assets of the fund itset d. Load funds, as well as no-load funds, may charge 12b-1 fees. O e. Paying a load when investing in a mutual fund results in only a one-time cost, equivalent to the payment when the fund is purchased Click Submit to complete this assessment.

Explanation / Answer

Option “d” is not true, since no-load funds do not charge any sales charge.

12b – 1 is the percentage of commission, ranging from 0.25% to 1%.

Open-end fund means that the fund is open for trading. It depends on the fund manager up to what extent it will go on, before it could be closed for new investors.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.