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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
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 trailer fee. Assume that the management and trailer fees are charged based on year-end asset value. The gross annual return on the funds shares is 9%. What is your net annual rate of return to the nearest basis point?
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