SIE Understanding Products and Their Risks Practice Question 14

Question: 14

Which of the following is common to a unit investment trust (UIT) and mutual funds?

Correct Answer: D

Explanation:

D: Both a UIT and a mutual fund may have front-end sales charges and CDSCs. A mutual fund may also have 12b-1 fees. Choice A is a characteristic of a UIT but not a mutual fund. Choices B and C are not characteristic of a UIT, which is not actively managed.

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