When the Offer Price and the NAV of a Mutual

question 56

Multiple Choice

When the offer price and the NAV of a mutual fund are equal, it is an indication that

• A) the fund's assets are in equilibrium.
• B) the fund is trading at par.
• C) it is strictly a coincidence.
• D) the fund has no initial fee.
• E) the fund is backloaded.

---

Definitions:

Lowest Cost

The minimum expense required to achieve a specific outcome or produce a good.

Junior Partner

A partner in a firm who has less responsibility, power, or seniority than senior partners.

Damage Award

A compensation amount determined by a court to be paid to a plaintiff who has suffered loss or harm due to the defendant's actions.

Drudgery

Tedious, dull, or hard work that is often demeaning and exhausting.