Matt Owns 724

question 96

Multiple Choice

Matt owns 724.08 shares of a fund which has a current NAV of $41.04. He has owned all these shares for 3.3 years. The fund charges a contingent deferred sales charge which starts at 5% for the first year and declines by 1% each year thereafter. How much cash will he receive if he redeems all of his shares today?

• A)$29,121.92
• B)$29,709.36
• C)$30,334.82
• D)$30,647.55
• E)$31,023.14

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Definitions:

Chase Strategy

A production planning method that adjusts workforce levels and production rates to match demand, minimizing inventory levels and workforce costs.

Level Strategy

An inventory management strategy where production rates or workforce levels are kept constant despite demand fluctuations.

Formal Planning Model

A structured approach to planning that involves systematic procedures and methodologies to achieve specified objectives.

Pure Level Strategy

A production strategy where the output rates are kept constant and inventory is used to absorb fluctuations in demand.