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Question
A money market mutual fund's total assets increase from $100 to $105 when the fund has 100 shares outstanding. Which of the following will happen?
A. The fund's NAV will rise from $100 to $105.
B. The fund's NAV per share will rise from $1 to $1.05.
C. The fund will issue a total of 5 new shares.
D. The fund's NAV will fall 5%.
E. The fund will close to new investors.
Answer
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