Asked by Brittany McCord on Apr 28, 2024
Verified
The offer price of an open-end fund is $18 and the fund is sold with a front-end load of 5%. What is the fund's NAV?
A) $18.74
B) $17.10
C) $15.40
D) $16.57
Front-end Load
A sales charge or commission paid by an investor at the initial purchase of mutual fund shares, usually used to compensate brokers or sales agents.
NAV
Net Asset Value, the total value of a fund's assets minus its liabilities, divided by the number of shares outstanding.
- Acquire knowledge about the structure and types of expenses related to mutual funds and their repercussions on the profits of investors.
- Evaluate the charges, incomes, and yields related to mutual funds and acknowledge their implications for investment decisions.
Verified Answer
DM
Learning Objectives
- Acquire knowledge about the structure and types of expenses related to mutual funds and their repercussions on the profits of investors.
- Evaluate the charges, incomes, and yields related to mutual funds and acknowledge their implications for investment decisions.