Two Mutual Funds Are Quoted as Follows Given These Quotes, Which One of the Following Is True

question 64

Multiple Choice

Two mutual funds are quoted as follows. $$\begin{array} { l l l l l } \text { Fund A } & \text { NAV } & 17.13 & \text { Offer Price } & 18.18 \\\text { Fund B } & \text { NAV } & 19.03 & \text { Offer Price } & 19.03 \\\hline\end{array}$$ Given these quotes, which one of the following is true?

• A) Both funds are load funds.
• B) Fund A is a no-load fund.
• C) Fund B is a no-load fund.
• D) Both funds are no-load funds.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, representing the cost of the asset minus accumulated depreciation.

Market Value

The current value at which an asset or company can be bought or sold on the open market.

Financial Position

A company's monetary resources and obligations at a given point in time, reflected in its balance sheet.

Net Working Capital

The gap between a firm's existing assets and its immediate liabilities, showing the company's short-term financial stability.