Which statement is true? Investors must pay higher fees to fund managers to gain access to more...

Which statement is true?

Investors must pay higher fees to fund managers to gain access to more lucrative investment opportunities

The SEC regulates fees, and all mutual funds must charge the same amount per transaction

There is a significant and positive correlation between the fees charged by mutual funds and the realized returns.

Higher fees charged by mutual funds do not usually result in higher returns for the investor

Expert Solution

A investor may invest more to get higher return in mutual fund, but always they doesn’t get higher return, because there is a risk associated with it, => the correct option is “D” that is “higher fees charged by mutual funds do not usually result in higher return for the investor”.

Rahul Sunny answered 2 years ago

1. Which of the following is NOT a true statement? a. The fees for a stock...

1. Which of the following is NOT a true statement? a. The fees for a stock index fund are usually less than for an actively-managed fund. b. Over long periods of time, a majority of managers of actively-managed mutual funds have not been able to consistently beat the market; therefore, a good strategy is to “join the market” by investing broadly in index funds. c. Because little trading occurs in a stock index fund, the index fund would typically incur...

Discuss Briefly: (a) The more debt a firm issues, the higher interest rate it must pay;...

Discuss Briefly: (a) The more debt a firm issues, the higher interest rate it must pay; thus firms should operate at conservative debt levels. (b) Given the choice between two investment projects with the same systematic risk and the same expected return, all bondholders would prefer the project with the lower variance and all stockholders would prefer the project with the higher variance. (c) Black-Sholes is inappropriate for valuing a levered firm’s equity, the empirical evidence indicates that higher interest...

Which of the following statements are true? There may be more than one true statement. A....

Which of the following statements are true? There may be more than one true statement. A. Any linear combination of vectors can always be written in the form Ax for a suitable matrix A and vector x. B. Every matrix equation Ax=b corresponds to a vector equation with the same solution set. C. If the echelon form of the augmented matrix [A | b][A | b] has a leading entry in every row, then the equation Ax=b is inconsistent. D....

Question 8 Which of the following statement is true? a. A higher inflation in Thailand than...

Question 8 Which of the following statement is true? a. A higher inflation in Thailand than that in Japan is a pressure to appreciate the Baht against Yen. b. The long-lasted low interest rate has motivated the decrease in Yen-carry foreign investments. c. An increase in interest rate in Indonesia does not always increase multinational companies’ investment to the country. d. Multinational companies are hesitant to invest in emerging markets because they expect appreciation of the emerging markets’ currencies.

What is the importance of benchmark bonds yield for investors and fund managers? How does the...

What is the importance of benchmark bonds yield for investors and fund managers? How does the benchmark of bonds yield is set the debt instruments market?

Which of the following statement is incorrect? a. A given amount of money you must pay...

Which of the following statement is incorrect? a. A given amount of money you must pay out today is a greater burden than the same amount paid in the future. b. Most of the answers are correct. c. With an amortized loan, the amount of interest increases each year, and the amount contributed to principal decreases each year. d. With an amortized loan, the amount of interest decreases each year, and the amount contributed to principal increases each year. e....

Which of the following is a true statement? Which of the following is a true statement?...

Which of the following is a true statement? Which of the following is a true statement? a. The electric potential energy depends on both the electric field and the amount of charge moving through that field. b. The electric potential depends on both the electric field and the amount of charge moving through that field. c. The electric potential energy and the electric potential depend on both the electric field and the amount of charge moving through that field. d....

Why should company managers or investors pay attention tomacroeconomic indicators? Is it a good idea...

Why should company managers or investors pay attention to macroeconomic indicators? Is it a good idea for company managers to do a formal review of key macroeconomic indicators every quarter (every 3 months) or is it a waste of time?

Why should company managers or investors pay attention to macroeconomic indicators? Is it a good idea...