All of the above statements are true regarding 12b-1 fees. They are typically charged as an annual fee, usually a small percentage of the fund's assets, to cover distribution and marketing expenses. The SEC approves the use of 12b-1 fees, and they are capped at a maximum of 0.25 percent for no-load funds.

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5-57 12b-1 Fees

Question 53

Multiple Choice

5-57 12b-1 fees

A) are determined as a small percentage of the fund's investable assets.
B) are annual fees to cover distribution and marketing costs of the fund.
C) have been approved by the SEC.
D) are capped at a maximum 0.25 percent for no-load funds.
E) All of the above.

Correct Answer: