SIE practice questionmediumMutual Funds
A mutual fund prospectus must disclose all of the following EXCEPT:
- AThe fund’s objective and strategy
- BThe guaranteed rates of return for investors✓ Correct answer
- CFees and expenses
- DRisks associated with investing in the fund
Explanation
Why B — The guaranteed rates of return for investors
Prospectuses describe objectives, risks, and fees, but cannot guarantee returns. Guarantees are not permitted by mutual funds.
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