The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund....

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The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund....

The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund. The front end load is 2%. You sell your shares within six months at an NAV of $11 per share. The redemption fees is 3%. What is your return from this mutual fund investment?

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Answer 1

Answer #1

rate positively ..

	Amount invested =			100000
	Front end load @ 2% =			2000
	Net amount invested =			98000
	NAV per share =			10

	Number of share holding = 98000/10			9800

	Sales price = 9800*11			107800
	Redemption fees @ 3%			3234
	Net sales price =			104566

	Therefore return = 104566-100000			4566

	Return % = 4566/100000			4.57%

	Ans =			4.57%

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Answer 2

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