50.1K

Verified Solution

Link Copied!

You purchased 5000 shares in the new Pacific Grove fund on January 2, 2019, at an offering price of 42.40 per share. The front end load for this find is 5%, and the back end load for redemptions within one year is 2%. The underlying assets in this mutual fund appreciate including reinvested dividends by 6% during 2019 and you sell back your shares at the end of the year. If the operating expense ratio for the new Pacific Grove fund is 1.5%, what is your total return from this investment?

You purchased 5,000 shares in the New Pacific Growth Fund on January 2, 2019, at an offering price of $42.40 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 2 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 6 percent during 2019, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 15 percent, what is your total return from this investment? (Assume that the operating expense is netted against the fund's return) (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Total return %

Answer & Explanation Solved by verified expert

See Answer