Calculate the Annual Rate of Return for a Mutual Fund

question 23

Multiple Choice

Calculate the annual rate of return for a mutual fund with the following fees and expected returns $$\begin{array} { c c c c c } \text { Investment } & \text { E(Retum) } & \text { Load } & 12 b - 1 \text { fee } & \text { Years Held } \\\text { Mutual Fund } & 7 \% & 4 \% & 0.50 \% & 7 \text { years }\end{array}$$

• A)4.95%
• B)5.0%
• C)5.85%
• D)2.5%
• E)6.55%

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Definitions:

Bandura

A psychologist best known for his work on social learning theory, emphasizing the role of observational learning in behavior.

Observational Learning

The process of acquiring information by observing others; learning by watching and imitating others' actions.

Bobo Doll

A doll used in psychological experiments to study aggression, notably in Bandura's observational learning theory.

Aggressive Behavior

Actions meant to harm or intimidate others, motivated by hostility or as a means of achieving a goal.