The Stable Utility Fund Has an Offering Price of $54

question 40

Multiple Choice

The Stable Utility Fund has an offering price of $54.11 and an NAV of $52.48.What is the front-end load percentage?

• A) 3.0 percent
• B) 3.1 percent
• C) 3.5 percent
• D) 3.8 percent
• E) 4.0 percent

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Definitions:

Consumer Surplus

The difference in the amount consumers would ideally pay for a service or good versus what they really spend.

Producer Surplus

The imbalance between the desired compensation by producers for a good or service and the real income they secure.

Binding Price Ceiling

A government-imposed limit on the price of a commodity or service that is set below the market equilibrium price, causing a shortage.

Binding Price Floor

A government-imposed price control set above the equilibrium price, causing a surplus by forcing the price to be higher than what the market would naturally set.