You Have $16,000 to Invest in a Mutual Fund with a NAV

question 59

Multiple Choice

You have $16,000 to invest in a mutual fund with a NAV = $45. You choose a fund with a 4 percent front load,a 1 percent management fee,and a 0.25 percent 12b-1 fee. Assume that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the fund's shares was 9 percent. What was your net annual rate of return to the nearest basis point?

• A)3.33 percent
• B)7.64 percent
• C)6.25 percent
• D)4.52 percent
• E)4.64 percent

---

Definitions:

Reticul/o

A prefix in medical terminology related to the reticular formation in the brain or reticulated (net-like) structures in anatomy.

-Penia

A suffix used in medical terminology to denote a deficiency or decrease in the number of something, as in "leukopenia" (decrease in white blood cells).

Thromb/o

A prefix meaning clot, often used in medical terms related to blood clotting.

-Emia

A suffix in medical terminology indicating a condition of the blood.