The cost of maintaining an investment in a mutual fund is best reflected in the:
A. expense ratio
B. sales charge
C. custodial fee
D. net investment income
Answer:A
The cost of maintaining an investment in a mutual fund is best reflected in the:
A. expense ratio B. sales charge C. custodial fee D. net investment income
Explanation: expense ratio. Custodial fees are negligible and the sales charge is a one-time expense. The “best” reflection of mutual fund costs is the expense ratio.