Funds Beginner: Mutual Fund Expenses

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1.
Which of the following is not a cost covered by a mutual fund's 12b-1 fees?
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Management expenses. These are not covered by 12b-1 fees, but by their own fees.
2.
A 1.5% expense ratio is acceptable for which type of fund?
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A foreign-stock fund. You should expect to pay less for fund types with a narrow range of returns, such as bond or large-cap stock funds. Look for funds with expense ratios of 1% or less. The range of returns is wider for small-cap or foreign funds, so you should expect to pay more.
3.
Redemption fees cover the _______ of mutual fund shares.
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Selling. Redemption fees are charged when you sell, or redeem, shares back to a fund.
4.
Which class of mutual fund shares includes charges in addition to sales loads?
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Class C. In addition to a small front-end load, class C shares include other fees (such as marketing costs).
5.
What is the name of the expense that compensates those who administer a mutual fund?
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Management fee. This fee pays for those who run funds.