If You Invest $4000 in a Mutual Fund with a Net

question 74

True/False

If you invest $4000 in a mutual fund with a net asset value of $25 per unit, you will purchase 200 units.

---

Definitions:

Account

A record that keeps track of financial transactions, investments, or the financial state of an individual, institution, or company.

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.

Risk Averse

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains.

Present Value

The worth at present of an anticipated future cash amount or stream of payments, considering a particular rate of return.