SIE Exam Question 886: Answer and Explanation

Question: 886

Which of the following is the formula to calculate an investment's public offering price (POP)?

• A. POP = NAV ÷ Sales charge
• B. POP = Sales charge ÷ NAV
• C. POP = NAV + Sales charge
• D. POP = NAV - Sales charge

Correct Answer: C

Explanation:

The formula to calculate an investment's public offering price is: POP = NAV + Sales charge