10
Select all the correct answers.
Which two statements relating Investment costs and returns are correct?
Returns typically increase when Investors pay a back-end load for every fund sold.
Returns may be lower than expected when Investors pay brokerage fees for trading.
Returns may be higher when Investors are charged inactivity fees.
Returns may be lower than expected because Investors pay taxes on all income earned.
Returns may be higher than expected when Investors pay commission to brokers.

Respuesta :

Answer:

  • Returns may be lower than expected when Investors pay brokerage fees for trading.
  • Returns may be lower than expected because Investors pay taxes on all income earned.

Step-by-step explanation:

Any charges or fees will lower returns. This includes front-end fees, back-end fees, brokerage fees for trading, taxes, commissions, management fees, inactivity fees, or any other fees that may be charged--they all reduce returns.

Under no circumstances will paying additional fees cause returns to be higher.