SIE practice questionmediumOpen-end Mutual Funds - NAV Calculation
The NAV of an open-end mutual fund changes primarily as a result of:
- ADistribution of sales loads
- BNumber of shares bought and sold by investors
- CListing on an exchange
- DFluctuations in the value of the underlying portfolio✓ Correct answer
Explanation
Why D — Fluctuations in the value of the underlying portfolio
NAV reflects the market value of a fund's underlying assets minus liabilities. B is incorrect because share issuances/redemptions don't directly affect NAV per share. C and D do not impact NAV calculations.
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