On January 1, You Invest $10,000 in an Open-End Mutual

question 55

Multiple Choice

On January 1, you invest $10,000 in an open-end mutual fund selling for $25 per share that has a 2% load, 1.5% management fee and 1% 12b-1 expense s. If the fund NAV appreciates to $28 by the time you sell it on December 31, what was your return on investment?

• A) 9.76%
• B) 11.2%
• C) 8.7%
• D) 14%

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Definitions:

Selective Screening

Allows only a portion of available information to enter our perceptions.

Conscious Awareness

Pertains to being fully aware and mindful of one's immediate environment, thoughts, and feelings.

Law Of Effect

Law of effect states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not.

Past Experiences

The collective events or occurrences in one's life that shape perceptions, attitudes, and behaviors.