Calculate the Annual Rate of Return for a Mutual Fund

question 50

Multiple Choice

Calculate the annual rate of return for a mutual fund with the following fees and expected returns.

• A) 4.95%
• B) 5.0%
• C) 5.85%
• D) 2.5%
• E) 6.55%

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Partner

A partner is an individual or entity engaged in a partnership, sharing the profits, losses, and management responsibilities within the business agreement.

Net Income

The leftover financial gain of a corporation once expenses and taxes are deducted from the total revenue.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.