• Now, it is early 2015. Ron is looking back at his investment experience and is trying to learn his lessons! But this time, he decided that the days of picking single stocks are over! Further, Ron became too busy to have such active trading style. This time, Ron wants to try investing his money at a mutual fund and he has a total of $300,000 to invest after he convinced his wife to invest part of her savings with him. Currently Ron is considering two alternatives. alternative A, Bloom closed-end mutual fund with a net asset value of $15 per share and a front-end load of 5%, and alternative B, TWE open-end mutual fund with an offering price of $16 per share and is sold with a front-end load of 8%.

8) What is the offering price of the Bloom mutual fund?

1. $15.78
2. $11.76
3. $16
4. $14.2

9) What is the net asset value of TWE mutual fund?

1. $ 16
2. $14.72
3. $ 17.39
4. $ 11.76