You Purchased Shares of a Mutual Fund at a Price

question 59

Multiple Choice

You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 6.0%. If the securities in which the fund invested increased in value by 10% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would be

• A) 1.99%.
• B) 2.32%.
• C) 1.65%.
• D) 2.06%.
• E) None of the options are correct.

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Definitions:

Separate Institutions

Facilities or organizations that are segregated based on certain criteria, such as race, gender, or religion, often seen historically in the context of racial segregation.

Confederation Congress

The governing body of the United States under the Articles of Confederation from 1781 to 1789, preceding the current Constitution.

Domestic

Pertaining to the home, household affairs, or internal activities within a country as opposed to foreign or international.

Diplomatic

Pertaining to the conduct of negotiations and formal relations among countries, often involving ambassadors, international laws, and treaties.