SIE practice questionmediumOpen-End Mutual Funds
An open-end mutual fund must stand ready to:
- ABuy and sell shares only annually
- BRepurchase shares at any market price
- CRedeem shares at the next computed NAV✓ Correct answer
- DCancel shares at the fund manager's discretion
Explanation
Why C — Redeem shares at the next computed NAV
An open-end mutual fund must stand ready to redeem investor shares at the next computed NAV. Redemption is not annual, not at an arbitrary market price, and not solely at the manager's discretion.
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