If a Mutual Fund Charges a Front-End Load of 3

question 106

Multiple Choice

If a mutual fund charges a front-end load of 3%, how much must the investor pay per unit if the NAVPS is $10.00?

• A)$9.70
• B)$10.00
• C)$10.16
• D)$10.31
• E)$13.00

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Definitions:

Perfectly Rational

A theoretical concept where individuals make decisions with complete logic, maximizing utility.

Nobel Prize

A set of international awards granted annually in several categories such as Peace, Literature, and various sciences, recognizing significant contributions to humanity.

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An influential scholar in the realms of economics, psychology, and computer science, known for his work on decision-making and artificial intelligence.

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A theoretical concept of a person who makes rational decisions by maximizing utility or profit based on limited resources.