Which One of the Following Statements Is Correct Concerning an Open-End

question 21

Multiple Choice

Which one of the following statements is correct concerning an open-end mutual fund which charges a front-end load?

• A)The number of shares outstanding was fixed at the time the fund was created.
• B)If an investor wishes to sell her shares, she must do so by selling to another investor.
• C)The NAV exceeds the offering price.
• D)The load is expressed as a percentage of the NAV.
• E)Investors receive the NAV when shares are sold.

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Definitions:

Dry

indicates a lack of moisture or water content.

Uncompacted Clay

Clay that has not been compressed, retaining a high water content and low strength.

Unsaturated Zone

The layer of ground above the water table where soil and rock particles are not fully saturated with water.

Saturated Zone

The layer of an aquifer in which all the pores and rock fractures are filled with water.