select the correct answer. an investor purchased a mutual fund through his broker. the broker charged him a…

select the correct answer. an investor purchased a mutual fund through his broker. the broker charged him a fee of 3.75% of the amount of the fund. which type of fee has the broker charged? a. trade commission b. front - end load c. expense ratio d. back - end load e. advisory fee

select the correct answer. an investor purchased a mutual fund through his broker. the broker charged him a fee of 3.75% of the amount of the fund. which type of fee has the broker charged? a. trade commission b. front - end load c. expense ratio d. back - end load e. advisory fee

Answer

Brief Explanations:

A trade - commission is a fee charged by a broker for executing a trade. A front - end load is a sales charge paid when buying a mutual fund, usually as a percentage of the investment amount. An expense ratio is an annual fee for managing the fund. A back - end load is a fee when selling the fund. An advisory fee is for investment advice. Here, the 3.75% fee charged when buying the mutual fund is a front - end load.

Answer:

B. front - end load