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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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