A Mutual Fund Has $50 Million in Assets at the Beginning

question 90

Multiple Choice

A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year-end asset values. If there are no distributions, what is the end-of-year NAV for the fund?

• A) $50
• B) $55.44
• C) $56.12
• D) $54.55

Understand the concept of price discrimination and how tying can be an example of this.

Recognize the effects of resale price maintenance on market competition and its legitimate economic purposes.

Comprehend the implications of the prisoners' dilemma in repeated games and the role of strategies like tit-for-tat.

Identify the significance of antitrust laws, such as the Sherman Antitrust Act, in regulating trade and competition.

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Definitions:

SEC Regulations

Rules and guidelines established by the Securities and Exchange Commission (SEC) to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Private Investors

Individuals or entities that invest their own capital in various financial instruments or businesses, aiming for personal profit.

Private Partnerships

Agreements or collaborations between private entities or individuals for business purposes, often structured to achieve specific goals or projects.

Wealthy Investors

Individuals or entities with significant amounts of capital to invest, often looking for tailored financial advice and specialized investment products.