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
A is correct; mutual funds redeem shares at the next NAV. B and C are false—mutual funds redeem at NAV on any business day. D is incorrect as redemption is at investor's request.
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