Tests of mutual fund performance indicate that funds with ______________ tend to have poorer performance.
A) more funds in the family
B) higher expense and turnover ratios
C) lower management fees
D) larger asset size

Question

Quizplus · Accepted Answer

Higher expense and turnover ratios indicate greater costs for the fund, which can lead to lower net returns for investors. High expenses can eat away at returns over time, resulting in poorer performance.

Tests of Mutual Fund Performance Indicate That Funds with ______________