5-53 Open-End Mutual Funds

question 92

Multiple Choice

5-53 Open-end mutual funds

• A)require that NAV consider the amount of discount or premium in the share value.
• B)calculate the NAV based on the total value of assets held divided by the number of fund shares outstanding.
• C)may experience fluctuations in the number of shares outstanding on a daily basis.
• D)All of the above.
• E)Answers B and C only.

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Definitions:

Special Offer

A promotional deal or discount aimed at encouraging consumers to buy a product or service.

Direct Materials

The raw materials that can be directly traced to the manufacturing of a product.

Remachine

The process of reworking or refurbishing a piece of machinery to restore its functionality or improve its performance.

Manufacturing Cost

The total expense incurred in the process of producing goods, including direct materials, direct labor, and manufacturing overhead.