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a) You purchased 3,200 shares in the NewPacific Growth Fund on January 2, 2016, at an offering price of$47.50 per share. The front-end load for this fund is 4 percent,and the back-end load for redemptions within one year is 2 percent.The underlying assets in this mutual fund appreciate (includingreinvested dividends) by 5 percent during 2016, and you sell backyour shares at the end of the year. If the operating expense ratiofor the New Pacific Growth Fund is 1.83 percent, what is your totalreturn from this investment? (Assume that the operating expenseis netted against the fund’s return.) (A negativevalue should be indicated by a minus sign. Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.)

b) You are going to invest in a stock mutualfund with a front-end load of 4.5 percent and an expense ratio of1.45 percent. You also can invest in a money market mutual fundwith a return of 2.3 percent and an expense ratio of 0.20 percent.If you plan to keep your investment for 2 years, what annual returnmust the stock mutual fund earn to exceed an investment in themoney market fund? What if your investment horizon is 12 years?(Do not round intermediate calculations. Enter your answersas a percent rounded to 2 decimalplaces.)c

c)

Suppose you’re evaluating three alternative MMMF investments.The first fund buys a diversified portfolio of municipal securitiesfrom across the country and yields 3.2 percent. The second fundbuys only taxable, short-term commercial paper and yields 5.4percent. The third fund specializes in the municipal debt from thestate of New Jersey and yields 3.4 percent. Your federal income taxrate is 35 percent and you are a resident of Texas, which has nostate income tax.

Calculate the after-tax yield for each of the alternatives.(Do not round intermediate calculations. Enter your answersas a percent rounded to 2 decimal places.)

Municipal Fund____

Taxable Fund_____

New Jersey Municipal Fund____