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:

Step1: Recall no-load fund pricing

For no-load mutual funds, the offer price equals the net asset value (NAV), so total investment is based on NAV per share.

Step2: Calculate total investment

Total investment = NAV per share × number of shares, which matches option c.

Step3: Eliminate other options

• a: $\frac{\text{net assets}}{\text{number of shares}}$ = NAV per share, not total investment.
• b: $\frac{\text{NAV}}{\text{number of shares}}$ is an incorrect, non-standard calculation.
• d: No-load funds have no separate offer price, so this does not apply.

Answer:

c. net asset value x number of shares