The relationship between the abnormal returns for mutual funds and the operating expense ratio may be characterized as

Question

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The operating expense ratio is a measure of the fund's expenses as a percentage of its assets. A higher operating expense ratio means that the fund has higher expenses, which can eat into its returns. Therefore, the relationship between the abnormal returns for mutual funds and the operating expense ratio is likely to be strongly negative.

The Relationship Between the Abnormal Returns for Mutual Funds and the Operating