Standard #: SS.912.FL.6.3


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Explain how the expenses of buying, selling, and holding financial assets decrease the rate of return from an investment.


Examples


Example: Identify and compare the administrative operating costs (expense ratios) of several mutual funds and estimate the differences in the total amount accumulated after 10 years for each mutual fund, assuming identical market performance.

Example: Given several mutual funds, determine how much an investor may be paying in costs.



Clarifications


Clarification 1: Instruction includes discussing costs and fees associated with different types of investments. These costs and fees may include, but are not limited to, management fees, commissions, and annual expense ratios.

Related Courses

Course Number1111 Course Title222
2102300: Economics and Personal Finance (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102305: Economics and Personal Finance Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102371: Personal Finance and Money Management (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102373: Personal Finance and Money Management Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))


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