Need answer You purchased 5,400 shares in the New Pacific GrowthFund on January 2, 2010, at an offering price of $63.9 pershare. The front-end load for this fund is 5 percent, andthe back-end load for redemptions within one year is 1percent. The underlying assets in this mutual fundappreciate (including reinvested dividends) by 3 percentduring 2010, and you sell back your shares at the end ofthe year. If the operating expense ratio for the NewPacific Growth Fund is 1.61 percent, what is your totalreturn from this investment?

Step 1: Initial Investment Calculation:We started by determining the initial cost of purchasing…

Answered: You purchased 5,400 shares in the New…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 8FPE

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