What Would Be the Return on a $1000 Investment in a Mutual

question 31

Essay

What would be the return on a $1000 investment in a mutual fund whose NAV is $20? The fund has a 3 percent front-end load and,during the holding period,$400 of fund distributions are reinvested at a NAV of $25 (no load applied to reinvestment).The fund is ultimately sold at a NAV of $24.(Round to the nearest tenth of a percent.)

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.

Corporate Decisions

Corporate decisions are choices or judgments made by the leadership of a corporation that affect the direction, strategy, operations, or governance of the organization.

Preemptive Rights

Rights that allow shareholders to purchase additional shares in a company before the company offers them to the public, protecting their ownership percentage from dilution.

Transferability

The ability of an asset or property right to be sold or otherwise transferred from one party to another.