Canadian Securities Course (CSC) Practice Exam · Question
An investor holds 1,000 units of the Growth Opportunities Mutual Fund. This fund has an annual Management Expense Ratio (MER) of 2.25%. If the fund's average Net Asset Value (NAV) per unit over the year was $25.00, what is the total dollar value of the MER paid by this investor in that year?
The total dollar value of the MER is calculated as (NAV per unit * Number of units * MER percentage). So, $25.00 * 1,000 units * 0.0225 = $562.50.
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Question: An investor holds 1,000 units of the Growth Opportunities Mutual Fund. This fund has an annual Management Expense Ratio (MER) of 2.25%. If the fund's average Net Asset Value (NAV) per unit over the year was $25.00, what is the total dollar value of the MER paid by this investor in that year?
Answer options: ✅ $562.50
- $225.00
- $22.50
- $56.25
Correct answer: $562.50
Explanation: The total dollar value of the MER is calculated as (NAV per unit * Number of units * MER percentage). So, $25.00 * 1,000 units * 0.0225 = $562.50.
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