Problemyou have 16000 to invest in a mutual fund with a nav, Ask an Expert

Accounting

Problem:

You have $16,000 to invest in a mutual fund with a NAV = $45. You choose a fund with a 4% front load, a 1% management fee, and a 0.25% 12b-1 fee. Assume that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the fund's shares was 9%.

Required:

Question: What was your net annual rate of return to the nearest basis point?

6.25%
4.52%
3.33%
4.64%
7.64%

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170408

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