which of the following describes how to calculate the total investment in a load fund? a. multiply the…

which of the following describes how to calculate the total investment in a load fund? a. multiply the number of shares by the net asset value. b. multiply the number of shares by the offer price. c. subtract the net asset value from the offer price. d. subtract the proceeds from the investments. please select the best answer from the choices provided

which of the following describes how to calculate the total investment in a load fund? a. multiply the number of shares by the net asset value. b. multiply the number of shares by the offer price. c. subtract the net asset value from the offer price. d. subtract the proceeds from the investments. please select the best answer from the choices provided

Answer

Answer:

B. Multiply the number of shares by the offer price.

Explanation:

Step1: Understand load - fund investment

The total investment in a load fund is based on the price at which shares are offered for sale.

Step2: Analyze each option

  • Option a: Multiplying by net - asset value is for no - load funds.
  • Option b: Offer price includes the load (sales charge). So, multiplying number of shares by offer price gives total investment.
  • Option c: Subtracting net - asset value from offer price gives the load amount, not total investment.
  • Option d: Subtracting proceeds from investments is an incorrect operation for calculating total investment in a load fund.