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:

Percent Of Fixed Assets

A financial ratio that indicates what portion of a company's total assets are made up of fixed assets, such as property, plant, and equipment.

Vertical Analysis

This is a method in financial statement analysis where each line item is listed as a percentage of another item. For income statements, each expense is presented as a percentage of sales, and on the balance sheet, each asset, liability, or equity is presented as a percentage of total assets.

Quick Assets

Cash and other current assets that can be easily converted to cash, such as temporary investments and accounts receivable.

Vertical Analysis

Vertical Analysis is a financial statement analysis tool that presents each item in the financial statement as a percentage of a base figure for the same period, facilitating ratio comparisons.