You Are Investing $8,000 in a Mutual Fund That Charges

question 51

Multiple Choice

You are investing $8,000 in a mutual fund that charges a 4.50 percent front-end load.The offering price is $24.70 a share.What will your investment be worth immediately after your shares are purchased?

• A) $7,520
• B) $7,640
• C) $8,000
• D) $8,360
• E) $8,420

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Definitions:

Revenue Function

A mathematical relation that calculates the total revenue generated by selling goods or services, typically as a function of price or quantity.

Total Profits

The total income a business has after subtracting all costs and expenses from total revenue.

Cost Function

A cost function calculates the total expense required to achieve a specific level of production or activity.

Profit-Maximizing

A strategy or process in which a company aims to achieve the highest possible profit through adjusting variables like production levels, pricing, and product mix.