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Net asset value is the price you pay for a share of a mutual fund.

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True

False

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.

If a load mutual fund is quoted with a net asset value of 35 and a buy price of 36.25, what is its sales charge?

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$1.25

$35

$36.25

3.45 percent

$1.25. The sales charge, or load, is the difference between the buy price and the net asset value.

Changes in the amount of cash a fund has to invest in securities can affect its net asset value by ______.

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Altering the amount of cash available for distributions

Altering the amount available for buying securities

Changing the number of shares owned by the public

Altering the amount available for buying securities. This, in turn, can affect the total value of the fund's assets.

Media quotes of closed-end funds carry all of the following except ________.

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Net asset value

Price

Number of shares outstanding

Number of shares outstanding. Quotes include net asset value and price, but no information on outstanding shares.

The net asset value of a no-load mutual fund is less than its offering price.

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True

False

False. It is the same as its offering price, since there is no sales charge.

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