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With mutual fund A shares, the price an investor pays is referred to as:
Answer: B. Mutual fund A shares typically charge a front-end sales charge, also called a load, which is a percentage of the investment in the mutual fund. The front-end sales charge or load is included in the price per share an investor pays. The current share price of a mutual fund is referred to as the net asset value, or NAV. The share price including any sales charge is referred to as the public offering price, or POP. For example, a fund with a NAV of $15 and a 5% front-end load has a POP of $15.79. That is calculated by dividing the $15 NAV by .95 (1 minus the 5% load). ROA refers to rights of accumulation and LOI refers to letter of intent. Both ROA and LOI are ways investors can get a volume discount on the price of load mutual fund shares.