Question
A mutual fund has $40 million in assets at the beginning of the year and 2 million shares outstanding throughout the year. Throughout the
A mutual fund has $40 million in assets at the beginning of the year and 2 million shares outstanding throughout the year. Throughout the year assets grow at 10% annually. The fund imposes a 12b-1 fee on all shares equal to 1% annually. The front-end fee of the fund is 4%. The fee is imposed on year-end asset values. If there are no distributions, what is the NAV for the fund at the end of the second year?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
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