CFA Practice Question

CFA Practice Question

The NAV of a mutual fund is $50. The sales commission charged by the fund is 3.5%. The selling price for a share of the fund is:
A. $51.75
B. $50
C. $51.81
Explanation: Selling price = $50/(1 - 0.035) = $51.81

User Contributed Comments 3

User Comment
neworizon what about $50*(1+3.5%)= $51.75 ?
Kathkun C. because 96.5% x 51.81 = 50
emma51 I thought it was offer price (buy price) NAV(1-0.035). Anyone?
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