A Fund Is Set Up to Charge a Load

question 53

Multiple Choice

A fund is set up to charge a load. Its net asset value is $17.70 and its offer price is $18.60. What percentage of the offer price does the load represent?

• A)4.84%
• B)5.08%
• C)16.74%
• D)15.93%
• E)20.67%

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Definitions:

Compensation

Payment or benefits provided to employees in exchange for their labor or services, including salaries, wages, and benefits packages.

Principal-agent Relationship

A dynamic between a principal, who delegates tasks, and an agent, who performs tasks on the principal's behalf, often leading to issues related to alignment of interests.

Decision Makers

Individuals or groups responsible for making choices that influence outcomes or the direction of a project, strategy, or organization.

Information

Data, facts, or knowledge conveyed or represented in a format that is understandable and can be used to make decisions.