A mutual fund has a 4% front-end load (assessed at year end), an expense ratio of 0.50% (assessed at year end), and a back-end load fee of 5% that falls by 1.0% after every full subsequent 12-months of holding the investment. What is the investor's annualized return (annual compounding) after 5 years if the NAV returns are 4.0% per year? Enter the answer to the nearest 3 decimals in terms of percentage points (so 7.651% would be entered as "7.651"). Assume an initial investment of
A mutual fund has a 4% front-end load (assessed at year end), an expense ratio of 0.50% (assessed at year end), and a back-end load fee of 5% that falls by 1.0% after every full subsequent 12-months of holding the investment. What is the investor's annualized return (annual compounding) after 5 years if the NAV returns are 4.0% per year? Enter the answer to the nearest 3 decimals in terms of percentage points (so 7.651% would be entered as "7.651"). Assume an initial investment of
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Incorrect Question 6
A mutual fund has a 4% front-end load fee, a 0.25% 12B-1 fee
(assessed at year end), an expense ratio of 0.50% (assessed at year
end), and a back-end load fee of 5% that falls by 1.0% after every
full subsequent 12-months of holding the investment. What is the
investor's annualized return (annual compounding) after 5 years if
the NAV returns are 4.0% per year? Enter the answer to the
nearest 3 decimals in terms of percentage points (so 7.651%
would be entered as "7.651"). Assume an initial investment of
10,000 (or whatever initial amount makes it easiest for you to
work the problem).
14.29
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