You pay $22,600 to the Laramie Fund, which has a NAV of $30 per share at the beginning of the year. The fund deducted a front-end load of 4%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.6% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year?

10.49%

12.26%

3.91%

13.25%

You are considering investing in a no-load mutual fund with an annual expense ratio of .8% and an annual 12b-1 fee of .95%. You could also invest in a bank CD paying 7.0% per year. What minimum annual rate of return must the fund earn to make you better off in the fund than in the CD?

7.80%

7.20%

7.95%

8.75%