52
QuizMultiple Choice

Mutual Funds

Question 52 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Which of the following describes how to calculate the total investment in a load fund?

Answer
A
Multiply the number of shares by the net asset value.
B
Multiply the number of shares by the offer price.
C
Subtract the net asset value from the offer price.
D
Subtract the proceeds from the investments.

Explanation

A load fund’s offer price includes the sales charge, so multiplying the number of shares by the offer price gives the total amount invested. For example, 10 shares at an offer price of $12 each cost $120. The correct choice is “Multiply the number of shares by the offer price.”

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