Multiple choice

The NAV of a mutual fund

  1. Keeps going up at a steady rate

  2. Fluctuates with market price movements

  3. Cannot go down at all

  4. Is always constant
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NAV (Net Asset Value) fluctuates based on the market value of the underlying securities held by the mutual fund. It does not only increase, can decrease when markets fall, and is not constant. NAV is calculated daily and changes with market movements.

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