The variety of management fees, 12b-1 fees, if any, and additional operating costs for a specific fund are referred to as
A) an expense ratio.
B) a rate of return.
C) liquidity.
D) the exchange ratio.
E) a security average.

Question

Quizplus · Accepted Answer

The variety of management fees, 12b-1 fees, and additional operating costs for a specific fund are all included in the expense ratio. The expense ratio is the annual fee assessed by mutual funds or exchange-traded funds to cover their operating expenses, including administrative, management, advertising, and other costs. It is expressed as a percentage of a fund's assets under management, and it gives investors an idea of how much they are paying to invest in the fund.

The Variety of Management Fees, 12b-1 Fees, If Any, and Additional