Four Months Ago, Dave Purchased 600 Shares of a Mutual

question 6

Multiple Choice

Four months ago, Dave purchased 600 shares of a mutual fund with an offering price of $17.50 per share. He paid a 2.50% front-end load and the fund charges total annual expenses of 1.03%. The NAV today is $19.00 per share and the fund has not made any distributions during this period. What is Dave's holding period return on this investment?

• A)−8.57%
• B)−7.89%
• C)1.44%
• D)7.89%
• E)8.57%

---

Definitions:

Critical Thinking

Purposefully dissecting and reviewing a topic to determine an outcome.

Pervasive Phenomenon

Something that is spread widely throughout an area or a group of people, affecting many aspects of a society or system.

Critical Thinking Skills

The ability to actively analyze, interpret, and evaluate information and arguments in a reflective and logical manner.

Innovative Suggestions

Novel or inventive ideas proposed to solve problems or improve a situation.