Question

The net asset value of stock in a mutual fund had increased by $20 per share when an investor decided to redeem them. The investor had purchased 100 shares of the stock for $2,316 and redeemed them for $4,301. What can you conclude about the fund? a. The fund is a no-load fund. b. The offer price of the fund was $0.15 less than the net asset value when purchased. c. The offer price of the fund was $0.15 more than the net asset value when purchased. d. The offer price of the fund was $0.15 more than the net asset value when sold.

Answer 1

Answer:

The answer is C. Have fun, get good grades.

Step-by-step explanation:

I took the test

Answer 2

The correct answer is letter c. The offer price of the fund was $0.15 more than the net asset value when purchased.


Formula for calculating NAV:

Net Asset Value (NAV) = (Assets - Debts) / (Number of Outstanding Units)

The Net Asset Value (NAV) is the price in which you pay to buy a unit of mutual fund scheme when you invest.