lilrdroses
Answered

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Which of the following expressions is equal to the total proceeds of a mutual fund?
a. net assets times number of shares
b. net asset value times number of shares
c. offer price times number of shares
d. profit minus investment
Please select the best answer from the choices provided
0000
ABCD

Sagot :

GinnyAnswer
To determine the total proceeds of a mutual fund, we need to understand the definitions of the terms involved.

1. Net Assets: This is the total value of the fund's assets minus its liabilities. This value itself does not factor into calculating proceeds directly unless divided by the number of shares to get the net asset value.

2. Net Asset Value (NAV): This is the per-share value of the fund's assets minus its liabilities. It is calculated by dividing the net assets by the number of shares outstanding. This is a crucial number used to determine the value of the fund.

3. Offer Price: This could be the price at which a new investor can buy shares, typically including any sales charges or fees.

4. Profit minus Investment: This represents the earnings after subtracting the initial investment. While it shows the gain or loss, it isn’t directly tied to total proceeds unless specifically used in context.

Since we want the total proceeds from a mutual fund, we're looking for a measure that represents the value per share times the number of shares. The NAV times the number of shares is the correct measure:

Option b. net asset value times number of shares

Thus, the expression equal to the total proceeds of a mutual fund is:

b. net asset value times number of shares.
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