You Purchase 500 Shares of a Mutual Fund with a Front-End

question 51

Multiple Choice

You purchase 500 shares of a mutual fund with a front-end load of 5 percent and a NAV of $63.12. The assets of the fund (including reinvested dividends) appreciated at 12 percent for the year, and the fund had total expenses of 1.80 percent. What was your return for the year?

• A) 12.00%
• B) 4.70%
• C) 6.40%
• D) 10.20%
• E) 4.94%

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Definitions:

Accounting

A structured process of noting down, disclosing, and analyzing the financial activities of a business entity.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period, typically a quarter or year.

Balance Sheet

A document that provides a snapshot of an organization's financial status by listing its assets, obligations, and the equity of its shareholders at a given time.

Account Balances

The amount of money in a financial repository at any given moment, which can change with deposits and withdrawals.