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On January 1st, Vanguard Wellington Fund, an open-end mutual fund, has the following assets and prices at 4:00 PM. Stock Shares owned Price Cisco Systems

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On January 1st, Vanguard Wellington Fund, an open-end mutual fund, has the following assets and prices at 4:00 PM. Stock Shares owned Price Cisco Systems 3,000 $50.00 Deere & Co. 2,000 $160.00 eBay Inc. 15, 000 $30.00 Ford Motor 6, 000 $10.00 Macy's Inc. 5,000 $40.00 On January 2nd, the assets and prices at 4 PM are: Stock Shares owned Price Cisco Systems 3,000 $55.00 Deere & Co. 2,050 $120.00 eBay Inc. 15, 000 $20.00 Ford Motor 6, 400 $20.00 Macy's Inc. 5, 000 $50.40 Question: The same investor decides to redeem all fund shares that he/she has bought on January 1st and submits an order to redeem before 4 PM on January 2nd. Assume that the fund also charges 1% back-end load. What is this investor's one-day rate of return? -12.88% -9.25% 1.65% -15.43% On January 1st, Vanguard Wellington Fund, an open-end mutual fund, has the following assets and prices at 4:00 PM. Stock Shares owned Price Cisco Systems 3,000 $50.00 Deere & Co. 2,000 $160.00 eBay Inc. 15, 000 $30.00 Ford Motor 6, 000 $10.00 Macy's Inc. 5,000 $40.00 On January 2nd, the assets and prices at 4 PM are: Stock Shares owned Price Cisco Systems 3,000 $55.00 Deere & Co. 2,050 $120.00 eBay Inc. 15, 000 $20.00 Ford Motor 6, 400 $20.00 Macy's Inc. 5, 000 $50.40 Question: The same investor decides to redeem all fund shares that he/she has bought on January 1st and submits an order to redeem before 4 PM on January 2nd. Assume that the fund also charges 1% back-end load. What is this investor's one-day rate of return? -12.88% -9.25% 1.65% -15.43%

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