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Question
You have $200,000 to invest in a mutual fund with a NAV = $70. This fund has a 4% of front load, a 1% of management fee and a 0.25% of 12b-1 fee. Assume that the management and 12b-1 fees are charged based on year-end asset value. The gross annual return on the fund's shares was 9%. What was your net annual rate of return to the nearest basis point?a. 3.33%
b. 7.64%
c. 6.25%
d. 4.52%
e. 4.64%
Answer
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