Problem 4-18 You purchased 1,000 shares of the New Fund at a price of $22 per...

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Question

Problem 4-18 You purchased 1,000 shares of the New Fund at a price of $22 per share at the beginning of the year. You paid a

business finance

Answer 1

Answer #1

Cost of shares =$22*1000/1-0.02

	=$22448.98

NAV1= NAV0(1 + Investment Return – Expense Ratio)

=$22*(1+0.11-0.01)

=$24.20

Value of shares at the end = $24.20*1000

=$24200

Return = $24200/22448.98 -1

=7.8%

Answer 2

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