One Year Ago, Allison Purchased 250 Shares of a Mutual

question 51

Multiple Choice

One year ago, Allison purchased 250 shares of a mutual fund which has a front-end load of 5.75 percent. The NAV at the time of purchase was $40. Today, the NAV is $42. The fund had total annual expenses of 1.65 percent. There were no fund distributions this past year. What is Allison's rate of return for the year?

• A) -1.10 percent
• B) -1.04 percent
• C) 4.71 percent
• D) 4.76 percent
• E) 5.00 percent

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Definitions:

Net Present Value

A calculation that determines the value of a series of future cash flows in today's dollars, taking into account the time value of money.

Automated Equipment

Equipment that operates with minimal human intervention, using technology to perform tasks that would otherwise require manual effort.

Attractive Investment

An investment that is appealing due to its potential for favorable returns or its alignment with investment criteria.

Simple Rate

A basic method for calculating interest or return, often expressed as a percentage over a period of time.