Answer:
A High Expense ratio has an adverse impact and reduces one's investment returns
Explanation:
An expense ratio shows how much money is spent on administrative costs in comparison to the money invested.
It represents the per unit cost of managing the fund by the mutual fund.
Expense Ratio = [tex]\frac{Total\ Fund\ Costs}{Total\ Fund\ Assets}[/tex]
Operating Expenses reduce the fund's assets, thereby reducing the return to investors.
Hence, a high expense ratio would reduce an Investor's return.
