mayanfang1

Correct answer is B)

Lee incorrectly describes an exchange fund. In an exchange fund, the investor contributes their shares to a common diversified pool of stock that similar investors have contributed to. The investor makes a commitment to keep their shares in the fund for a period of time after which they can withdraw a proportionate share of the fund. Lee is correct, however, in describing a disadvantage of an exchange fund. The investor must pay management fees in an exchange fund.