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Suppose you purchased 2 , 0 0 0 shares in the New Pacific Growth Fund on January 1 2 , 2 0 2 2 ,
Suppose you purchased shares in the New Pacific Growth Fund on January at an offering price of $ per share. The frontend load for this fund is percent, and the backend load for redemptions within one year is percent. The underlying assets in this mutual fund appreciate including reinvested dividends by percent during and you sell back your shares at the end of the year.
If the operating expense ratio for the New Pacific Growth Fund is percent, what is your percentage rate of return from this investment? Assume that the operating expense is netted against the fund's return.
PRACTICE ONLY What do you conclude about the impact of fees in evaluating mutual fund performance?
Note: The rate of return must be calculated as HPR Terminal Equity Initial Equity Initial Equity.
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