Final answer:
The correct match-up for the costs to the investment types is option c. A1, B1. Investment advisory fees and hourly fees are linked with both stocks and bonds and mutual funds, while commissions are associated with stocks and bonds. Mutual funds are notably linked with administrative costs.
Step-by-step explanation:
The student's question involves matching each cost with the corresponding investment type. The costs listed are investment advisory fees, commissions, hourly fees, and administrative costs, while the investment types are Stocks and Bonds and Mutual Funds. Typically, investment advisory fees and hourly fees are associated with the services of a financial advisor, which can be leveraged for both stocks and bonds and mutual funds. Whereas, commissions are most commonly associated with the buying and selling of stocks and bonds. Mutual funds, on the other hand, usually have administrative costs that are included in the fund's expense ratio.
Given these associations, the correct match-up is:
- Investment advisory fees - Mutual Funds
- Commissions - Stocks and Bonds
- Hourly fees - Mutual Funds
- Administrative costs - Mutual Funds
Therefore, option c. A1, B1 is the correct answer since investment advisory fees would relate to both stocks, bonds, and mutual funds, reflecting the comprehensive advice provided by a financial advisor for these investment types. The second part, B1, associates mutual funds with administrative costs, aligning with typical mutual fund fees.