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Finra Exam Series-6 Topic 7 Question 49 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 49
Topic #: 7

[All Series-6 Questions]

The MaxFee Mutual Fund has a front-end load of 8.5%. If its net asset value (NAV) per share is currently $32, for what price can an investor buy shares of the fund? (Round your answer to the nearest cent.)

A$29.49

B$34.97

C$34.72

D$29.28

Show Suggested Answer

Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.

by Malcolm at Oct 11, 2022, 04:58 PM

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Ellsworth

2 months ago

Wait, the fund has an 8.5% front-end load? That's like paying a cover charge to get into your own party! I'm going with the answer that lets me keep the most money in my pocket.

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Hyman

9 days ago

D) $29.28

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Rashida

17 days ago

C) $34.72

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Barabara

20 days ago

B) $34.97

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Valentin

25 days ago

A) $29.49

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Selene

2 months ago

I'm feeling lucky today, so I'm gonna go with A) $29.49. It's the closest to the NAV, so it's gotta be the right answer, right?

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Shawn

1 months ago

User 3: I agree with you, Shawn. C) $34.72 seems like the right option to me.

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Lacresha

1 months ago

User 2: I'm not sure, but I'm leaning towards C) $34.72. It seems like a reasonable choice.

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Pearlene

2 months ago

User 1: I think the answer is B) $34.97. That's my final answer.

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Ria

3 months ago

This is a tricky one, but I think the answer is D) $29.28. Gotta love those front-end loads, am I right?

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Kanisha

1 months ago

I always make sure to factor in fees before making any investment decisions.

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Tamera

1 months ago

Front-end loads can definitely make investing a bit more complicated.

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Pamella

1 months ago

I think you're right, D) $29.28 seems to be the correct answer.

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Valda

3 months ago

Hmm, let's see... If the NAV is $32 and the front-end load is 8.5%, then the price an investor would pay should be $34.97. I'm going with B).

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Shelton

2 months ago

I agree, it should be $34.97

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Bo

2 months ago

I think the answer is B) $34.97

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Geraldo

3 months ago

Wow, this question is really testing our math skills! I'm gonna go with C) $34.72, that's gotta be the right answer.

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Maryanne

2 months ago

I'm going to go with D) $29.28, it just feels right to me.

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Lilli

2 months ago

I agree with you, C) $34.72 seems like the most logical choice.

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Olene

2 months ago

I'm leaning towards B) $34.97, but not entirely sure.

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Farrah

3 months ago

I think the answer is A) $29.49, that front-end load is a big factor.

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Floyd

3 months ago

But the front-end load is subtracted from the NAV, so the price to buy shares would be lower than the NAV.

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Annelle

3 months ago

I disagree, I believe the correct answer is C) $34.72.

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Floyd

4 months ago

I think the answer is A) $29.49.

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