SIE Exam Question 856: Answer and Explanation

Question: 856

A mutual fund with a high turnover rate will require __________ active management and will typically charge __________ expenses.

• A. less, higher
• B. less, lower
• C. more, higher
• D. more, lower

Correct Answer: C

Explanation:

A mutual fund with a high turnover rate will require more active management and will typically charge higher expenses.