Canadian Securities Course (CSC) Level 2 Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Canadian Securities Course Level 2 Exam with our comprehensive practice exam. Engage with multiple-choice questions and gain insights on crucial topics to ensure you're ready for your certification.

Practice this question and more.

When is the calculation of NAVPS typically done in the context of mutual funds?

Monthly request 10 days before
Based solely on the annual business day
Calculated every 6 months
Calculated weekly

The correct answer is: Calculated weekly

The correct answer is that the net asset value per share (NAVPS) for mutual funds is calculated weekly. This frequent calculation allows investors to have up-to-date information on the value of their investments and enables the fund to reflect changes in the market value of its underlying assets more promptly. Mutual funds are required to calculate NAVPS regularly in order to ensure transparency and to provide shareholders with current pricing for their shares. This weekly calculation aligns with industry practices to keep investors informed about the fund's performance and the prevailing market conditions. The other options suggest less frequent calculations, which would not meet the standards expected in the mutual fund industry for providing timely information to investors. Thus, while monthly, semi-annual, and annual calculations could be included in certain reports, they do not reflect the usual practice regarding NAVPS computation.