Question

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

a
b
c
d

Explanation:

Step1: Define mutual fund proceeds

Total proceeds from selling mutual fund shares are calculated by multiplying the per-share value at redemption by the number of shares sold.

Step2: Match to correct formula

Net Asset Value (NAV) is the per-share value of a mutual fund for redemptions. Thus, total proceeds = $\text{NAV} \times \text{Number of Shares}$, which matches option b.

Step3: Eliminate incorrect options

• Option a: Net assets are total fund value, not per-share.
• Option c: Offer price is for purchases, not proceeds.
• Option d: Profit minus investment is not a standard proceeds formula.

Answer:

b. net asset value times number of shares