Question

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

a
b
c
d

Explanation:

A load fund's total investment is calculated using the offer price (which includes the sales load/fee) multiplied by the number of shares purchased. Option A uses net asset value, which excludes the load. Option C calculates the load amount itself, not total investment. Option D describes a calculation unrelated to total initial investment in the fund.

Answer:

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