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Finra Series-6 Exam - 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.)

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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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Dahlia
3 months ago
Not sure about that, I thought the load would make it lower than the NAV.
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Leota
3 months ago
Definitely going with option C, makes sense mathematically!
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Nadine
3 months ago
Wait, how does that even work? Seems off to me.
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Lea
4 months ago
I think the price comes out to around $34.72.
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Allene
4 months ago
The front-end load is 8.5%, so the price will be higher than the NAV.
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Dacia
4 months ago
I vaguely recall that the price should be lower than the NAV due to the load, but I can't remember the exact formula we used in class.
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Amber
4 months ago
I feel like I might be mixing up the calculations. Is it the NAV multiplied by the load percentage or added to it?
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Ashlee
4 months ago
I think the front-end load means we need to find 8.5% of the NAV and then add that to the $32. I practiced a similar question last week.
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Tiffiny
5 months ago
I remember we calculated the purchase price by adding the front-end load to the NAV, but I'm not sure how to do that with percentages.
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Graciela
5 months ago
Okay, let me break this down. The employee has provided service, so it's not just an expense. And it's for future benefits, not the current value proposition. I'm going with liability on this one.
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Valentin
5 months ago
Alright, time to put on my thinking cap. This seems like a pretty standard question about the data stored in the HR Profile table. I'll need to analyze each option and choose the three that are employment-related.
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Krystina
5 months ago
I've got a good feeling about this one. The key is to configure the GKE cluster as a private cluster and then set up the appropriate networking components to allow access to the third-party services.
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Ellsworth
9 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
8 months ago
D) $29.28
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Rashida
8 months ago
C) $34.72
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Barabara
8 months ago
B) $34.97
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Valentin
8 months ago
A) $29.49
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Selene
9 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
8 months ago
User 3: I agree with you, Shawn. C) $34.72 seems like the right option to me.
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Lacresha
9 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
9 months ago
User 1: I think the answer is B) $34.97. That's my final answer.
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Ria
10 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
9 months ago
I always make sure to factor in fees before making any investment decisions.
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Tamera
9 months ago
Front-end loads can definitely make investing a bit more complicated.
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Pamella
9 months ago
I think you're right, D) $29.28 seems to be the correct answer.
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Valda
10 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
10 months ago
I agree, it should be $34.97
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Bo
10 months ago
I think the answer is B) $34.97
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Geraldo
11 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
9 months ago
I'm going to go with D) $29.28, it just feels right to me.
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Lilli
9 months ago
I agree with you, C) $34.72 seems like the most logical choice.
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Olene
10 months ago
I'm leaning towards B) $34.97, but not entirely sure.
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Farrah
10 months ago
I think the answer is A) $29.49, that front-end load is a big factor.
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Floyd
11 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
11 months ago
I disagree, I believe the correct answer is C) $34.72.
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Floyd
11 months ago
I think the answer is A) $29.49.
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