Today, you are selling shares of an open-end mutual fund and will be charged a CDSC of 3%. The price you will receive per share is equal to:

Question

Quizplus · Accepted Answer

The CDSC (contingent deferred sales charge) is a fee charged when an investor sells shares in an open-end mutual fund within a certain time period after purchase. In this case, the CDSC is 3%, which means that the investor will receive 97% (100%-3%) of the NAV (net asset value) at the time of sale. The opening NAV and offering price are not relevant, and the closing offering price may be higher or lower than the closing NAV, so it is safer to choose C, which guarantees a price equal to 97% of the closing NAV.

Today, You Are Selling Shares of an Open-End Mutual Fund