A retail investor owns shares of Mutual Fund ABC that paid a $0.

Step by Step Explanation:

Ex-Dividend Date Pricing: On the ex-dividend date, the mutual fund's price is adjusted downward by the amount of the dividend.

Closing Price: $10.00

Dividend: $0.25

Adjusted Opening Price: $10.00 - $0.25 = $9.75.

Incorrect Options:

A: $9.25 subtracts more than the dividend amount.

C: $10.00 does not reflect the dividend adjustment.

D: $10.25 adds to the price rather than subtracting the dividend.

References:

SEC Guidance on Mutual Fund Pricing: SEC Mutual Funds.