Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
A closed-end fund with a net asset value of 11 and a price of 12 is selling at a discount.
Choose wisely. There is only one correct answer.
False. It is selling at one dollar above its net asset value.
2.
When a mutual fund makes a distribution to its shareholders, it adds the per-share amount to the net asset value.
Choose wisely. There is only one correct answer.
False. It subtracts the per-share amount.
3.
Net asset value is the price you pay for a share of a mutual fund.
Choose wisely. There is only one correct answer.
False. It is the value of a share, and it is the price you get when you redeem a share. If the fund is a load fund, you must pay a sales charge in addition to the net asset value.
4.
The "Chg." column in a mutual fund table notes how much the fund's net asset value has changed since the beginning of the year.
Choose wisely. There is only one correct answer.
False. The "Chg." column states the change over the previous day.
5.
The net asset value of a no-load mutual fund is less than its offering price.
Choose wisely. There is only one correct answer.
False. It is the same as its offering price, since there is no sales charge.