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5 Jan 2018
A mutual fund with a high 12(b)-1 fee will have a low expense ratio. T or F
A mutual fund with a high 12(b)-1 fee will have a low expense ratio. T or F
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Lelia LubowitzLv2
8 Jan 2018
Related questions
7. Suppose you would like to invest $5000 into a mutual fund for three years. The following 3 mutual fund all have an expected annual return of 12% but with different fee structures. Which mutual fund would you like to purchase? Hint: make sure that you understand clearly the fee structures of mutual funds.
FUND A | FUND B | FUND C | |
FRONT END LOAD | 2% | 3% | 0 |
BACK END LOAD | 2% if redeem within 1 year; 0% otherwise | 0 | 3% |
OPERATING EXPENSE RATIO | 1.25% | 1.75% | 1.5% |
12B-1 | .75% | .5% | .5% |