Question

which of the following expressions is equal to the total investment of a no load mutual fund?
a. net assets ÷ number of shares
b. net asset value + number of shares
c. net asset value × number of shares
d. offer price × number of shares

please select the best answer from the choices provided

a
b
c
d

Explanation:

For a no - load mutual fund, the total investment is calculated by multiplying the net asset value (NAV) per share by the number of shares. Let's analyze each option:

• Option A: Net assets divided by number of shares gives NAV, not total investment.
• Option B: NAV plus number of shares is not a valid formula for total investment.
• Option C: NAV multiplied by number of shares gives the total investment as each share is worth NAV and we have a certain number of shares.
• Option D: Offer price is relevant for load funds (which have a sales charge). No - load funds don't use offer price for calculating total investment as there's no load, so we use NAV.

Answer:

C. net asset value × number of shares