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

question 35

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%. How many fund shares will you receive?

• A) 595
• B) 640
• C) 616
• D) 668
• E) 628 ((1 - 0.045) * 17,445)/26.03

---

Definitions:

Socially Efficient

A condition where resources are allocated in a way that benefits society as a whole and maximizes overall welfare.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is increased by one unit; it is the cost of producing one additional unit of a product.

Quantity Of Output

The total amount of goods or services produced by a firm or economy within a specific period.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium is not achieved due to market failures or interventions.