When the Offering Price and the NAV Are the Same

question 5

Multiple Choice

When the offering price and the NAV are the same, you know that a mutual fund is not charging which one of the following fees?

• A)12b-1 fee
• B)front-end load
• C)management fee
• D)contingent deferred sales charge
• E)trading costs

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Definitions:

Optimum

The most favorable condition or highest achievable level of efficiency under the given circumstances.

Indifference Curves

Graphical representations in economics that show combinations of goods among which a consumer is indifferent.

Upward-sloping

A term used in economics to describe a curve that represents an increase in one variable as another variable increases, often used in the context of supply curves.

Preferences

Individual choices or tastes regarding various bundles of goods and services.