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An open-end fund is set up to charge a load. Its NAV is $8.72 and its offer price is $ 9.25. (a) What is the dollar value of the load commission?

An open-end fund is set up to charge a load. Its NAV is $8.72 and its offer price is $ 9.25.
• (a) What is the dollar value of the load commission?
• (b) What percent of the offer price does the load represent?
• (c) Do load funds necessarily outperform no-load funds?
• (d) How do no-load funds earn a return if they do not charge a commission?

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