Which of the following statements regarding a mutual fund's expenses are true?

Question

Quizplus · Accepted Answer

The true statement regarding a mutual fund's expenses is that a mutual fund's record maintenance fees cannot exceed 0.25% of average net assets. Mutual funds are permitted to have both front-end loads and charge 12b-1 fees, and the expense ratio of a mutual fund can exceed 1.0% (although a common recommendation is to select a fund with an expense ratio ≤ 1.0%.) Mutual fund families have the option of charging an "exchange fee" when an investor switches between their funds.

Which of the Following Statements Regarding a Mutual Fund's Expenses