Alex Invested $10,000 in a Mutual Fund Two and One-Half

question 76

Multiple Choice

Alex invested $10,000 in a mutual fund two and one-half years ago when the NAV of the fund was $25. Today, the NAV has risen to $28.30. Since the time of his original investment, Alex has obtained an additional 54.36 shares by reinvesting the fund distributions. The fund charges a contingent deferred sales charge of 6% the first year with the charge decreasing by 1% each year. How much money will he receive if he redeems his shares today?

• A)$11,633.78
• B)$11,930.52
• C)$12,344.05
• D)$12,858.39
• E)$13,501.31

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Definitions:

Opponent Processes

A theory in psychology and neuroscience that suggests certain emotions or visual perceptions are produced through opposing pairs of colors or feelings.

Lateral Inhibition

The pattern of interaction among neurons in the visual system in which activity in one neuron inhibits adjacent neurons’ responses.

Light Intensities

The measure of the wavelength and power output of light sources, impacting visibility and perception.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the concentration of cones.