the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return from this investment? (Assume that the operating expense is netted against the fund's return.) Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return from this investment? (Assume that the operating expense is netted against the fund's return.) Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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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Transcribed Image Text:Suppose you purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2022, at an offering
price of $63.90 per share. The front-end load for this fund is 5 percent, and the back-end load for
redemptions within one year is 2 percent. The underlying assets in this mutual fund appreciate (including
reinvested dividends) by 6 percent during 2022, and you sell back your shares at the end of the year. If
the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return
from this investment? (Assume that the operating expense is netted against the fund's return.) Note: A
negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places.
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