A fund is set up to charge a load. Its net asset value is $17.70 and its offer price is $18.60. What percentage of the net asset value does the load represent?

Question

Quizplus · Accepted Answer

The load is the difference between the offer price and the net asset value, which is $18.60-$17.70 = $0.90.

To find the percentage of the net asset value that the load represents, divide the load by the net asset value and multiply by 100:

($0.90/$17.70) x 100% = 5.08%

Therefore, the answer is B) 5.08%.

A Fund Is Set Up to Charge a Load