You Wish to Invest $17,445 in a Mutual Fund with a NAV

question 42

Multiple Choice

You wish to invest $17,445 in a mutual fund with a NAV of $26.03. The fund charges a front-end load of 4.50 percent. How many fund shares will you receive?

• A)595
• B)640
• C)616
• D)668
• E)628

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Definitions:

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical.

Market Structure

The organizational characteristics of a market, influencing competition and pricing, including perfect competition, monopolistic competition, oligopoly, and monopoly.

Oligopoly

A market structure characterized by a small number of firms dominating the market, often leading to limited competition.

Monopolistic Competition

A market structure characterized by many firms offering products or services that are similar but not perfect substitutes, leading to each firm having some market power.