SIE Exam Question 713: Answer and Explanation

Question: 713

Which of the following is/are correct regarding open-end mutual funds?

(1) Open-end mutual funds sell at their net asset value (NAV).

(2) Open-end mutual funds have a fixed capital structure.

• A. (1) only
• B. (2) only
• C. Both (1) and (2) are correct.
• D. Neither (1) or (2) are correct.

Correct Answer: A

Explanation:

Open-end mutual funds sell at their net asset value (NAV) and do not have a fixed capital structure.