You Purchased Shares of a Mutual Fund at a Price

question 51

Multiple Choice

You purchased shares of a mutual fund at a price of $17 per share at the beginning of the year and paid a front-end load of 5.0%. If the securities in which the fund invested increased in value by 12% during the year, and the fund's expense ratio was 1.0%, your return if you sold the fund at the end of the year would be

• A) 4.75%.
• B) 5.45%.
• C) 5.65%.
• D) 4.39%.

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Definitions:

Puritan Colonies

Settlements established in North America by Puritans, who sought religious freedom and aimed to create a society based on their theological beliefs.

Beaver Wars

Conflicts in the 17th century involving Native American tribes and European colonists, driven by the demand for beaver pelts.

Huron

A group of Native American peoples historically located in the region of the Great Lakes; known for their role in the fur trade and alliances during early European colonization.