You purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2016, at

Question

You purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $28 per share. The front-end load for this fund is 7 percent, and the back-end load for redemptions within one year is 1 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 6 percent during 2010, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 1.91 percent, what is your total percentage return from this investment? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

Initial NAV of the fund 28*(1-0.07) 26.04 Final NAV 26.04*(1+(0.06-0.0191)) 27.10504 Sales Proceeds 27.11(1-0.01) 26.8389 Return on Investment - (26.83-28)/28 -0.0418 Return on investment -4.18

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