Question

Which of the following refers to a measure of the total management fees and expenses charged to the mutual fund on an annual basis

Expense ratio.
Sales load.
Sales ratio.
12b-1 fee.

Answer 1

The correct answer is "Expense ratio".

Step-by-step explanation:

The expense ratio refers to the total management fees and expenses charged to the mutual fund on an annual basis, expressed as a percentage of the fund's total assets. This includes things like management fees, administrative fees, legal fees, accounting fees, and other operating expenses. Meanwhile, a sales load is a fee paid when buying or selling shares in a mutual fund, a sales ratio is a measure of how many shares are sold compared to the total shares outstanding, and a 12b-1 fee is a fee paid by a mutual fund to cover marketing and distribution costs.