Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Three years ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at a net asset value of $13.00

image text in transcribed

Three years ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at a net asset value of $13.00 per share. The fund has a 3% load that you elect to pay in addition to your initial investment to ensure that the full NAV is invested. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,100 shares in this fund for $14.45 per share. What is the compounded rate of return on this investment over the 3-year period? Select one: a. 2.90% O b. 5.83% C. 18.71% d. 5.88% e. 5.38%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions