SIE Exam Question 299: Answer and Explanation

Question: 299

A mutual fund would be offered at a premium to its value if it's a:

• A. Front-end load fund.
• B. A nondiversified fund.
• C. Back-end load fund.
• D. No load fund.

Correct Answer: A

Explanation:

A: A fund that charges a front-end load will be offered to the public at a price that is higher than its net asset value. The price known as the public offering price or POP contains the sales charge.