Question

Which TWO statements relating investment costs and returns are correct?

Answer 1

Answer:

Returns may be lower than expected when investors pay brokerage fees for trading. 

Returns may be lower than expected because investors pay taxes on all income earned.

Step-by-step explanation:

Lower cost investments tend to perform better than higher cost investments. It’s the surest way to predict which investment will provide the best returns. So the two best options are:

Returns may be lower than expected when investors pay brokerage fees for trading. 

Returns may be lower than expected because investors pay taxes on all income earned.