2 A mutual fund has a turnover of 25% and a potential capital gains exposure (PCGE) of 75%. You are consideringbuying this fund in a taxable account. Which of the following is an accurate statement?O You should be concemed about the PCGE, but the low turnover mutes the polential tax riskO You would be more concermed if this asset were being considered for an IRA account.O You should only be concerned if the PCGE represents long-term capital gains.O You do not need to be concerned about the PCGE because this fund is held in a taxable account.

Mutual Fund Turnover = 25% Potential Capital Gains Exposure = 75%

A mutual fund has a turnover of 25% and a potential capital gains exposura (PCGE) of 75%. You are considering buying this fund in a taxable account. Which of the following is an accurate statement? O You should be concemed about the PCGE, but the low turnover mutes the potential tax risk O You would be more concemed if this asset were being considered for an IRA account. O You should only be concermed if the PCGE represents long-term capital gains You do not need to be concerned about the PCGE because this fund is held in a taxable account.

A mutual fund has a turnover of 25% and a potential capital gains exposura (PCGE) of 75%. You are considering buying this fund in a taxable account. Which of the following is an accurate statement? O You should be concemed about the PCGE, but the low turnover mutes the potential tax risk O You would be more concemed if this asset were being considered for an IRA account. O You should only be concermed if the PCGE represents long-term capital gains You do not need to be concerned about the PCGE because this fund is held in a taxable account.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 2FPE

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