You invested $$4,500$ in a mutual fund exactly $39$ months ago when the NAV of the fund was $$31\mathrm{.}80.$ You have not acquired or sold any shares since that time. However, the fund paid a special distribution today of $$3\mathrm{.}00$ per share. Today, the NAV is $$30\mathrm{.}84.$ The fund charges contingent deferred sales charges of $6\%,5\%,4\%,3\%,2\%,2\%,$ and $1\%$ if the shares are redeemed within the first $7$ years, respectively.

Questions:

I. How much money will you receive, including the special distribution, if you redeem your shares today?

II$.$ What is your EAR for this investment?

III. If inflation was $2\mathrm{.}00\%$ per year over this same period, what was your real return?

Multiple Choice

A$.$

I. $$424\mathrm{.}53$

II$.2\mathrm{.}81\%$

III. $0\mathrm{.}81\%$

B$.$

I. $$4657\mathrm{.}75$

II$.1\mathrm{.}16\%$

III. minus $0\mathrm{.}84\%$

C$.$

I. $$424\mathrm{.}53$

II$.$ not enough information to determine

III. $2\mathrm{.}00\%$

D$.$

I. $$4233\mathrm{.}23$

II$.$ minus $5\mathrm{.}9\%$

III. minus $7\mathrm{.}9$

E$.$

I. $$4657\mathrm{.}75$

II$.1\mathrm{.}07\%$

III. minus $0\mathrm{.}93\%$

F$.$

I. $$4233\mathrm{.}23$

II$.$ minus $5\mathrm{.}9\%$

III. minus $5\mathrm{.}9\%$

H$.$

I. $$424\mathrm{.}53$

II$.3\mathrm{.}05\%$

III. $1\mathrm{.}05\%$

I.

I. $$424\mathrm{.}53$

II$.9\mathrm{.}43\%$

III. $7\mathrm{.}43\%$

J$.$

I. $$4657\mathrm{.}75$

II$.3\mathrm{.}51\%$

III. $1\mathrm{.}51\%$