A Mutual Fund Has a NAV of $34

question 3

Multiple Choice

A mutual fund has a NAV of $34.28 and an offering price of $36.08. What is the front-end load of the fund?

• A) 4.0%
• B) 4.5%
• C) 5.0%
• D) 5.5%
• E) 6.0%

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Definitions:

Nonprice Competition

Strategies companies use to attract customers that do not involve changing the price of goods or services, such as advertising and product differentiation.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount consumers are willing to buy at various prices.

Elasticity Coefficient

A measure that indicates how much the quantity demanded of a good or service changes in response to a change in price.

Average Revenue

The revenue a company receives for selling one unit of a product, or the total revenue divided by the quantity of products sold.