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:

Egocentrism

Egocentrism is the inability to differentiate between one's own perspective and someone else's perspective, often observed in children during the pre-operational stage of cognitive development according to Piaget.

Precausal Reasoning

A type of logical thinking observed in young children where cause-and-effect relationships are not understood in conventional or scientific terms.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Centered Thinking

Centered thinking refers to focusing on one aspect of a situation while ignoring others, often observed in cognitive development of children.