Series 7 Exam Question 327: Answer and Explanation

Question: 327

A mutual fund has an NAV of $9.30 and a POP of $10. What is the sales charge of this fund?

• A. 5 percent
• B. 6 percent
• C. 7 percent
• D. 8 percent

Correct Answer: C

Explanation:

C. To determine the sales charge percentage of a fund, use the following equation:

The POP is the public offering price, which is the price that investors pay, including the sales charge. The NAV is the net asset value and is where the fund should be trading, excluding the sales charge.