Annual expense ratio is netted out of the funds return

Assignment Help Financial Management

Reference no: EM131130652

You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.90 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 2 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 6 percent during 2010, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return from this investment? Assume that the annual expense ratio is netted out of the fund's return. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Total return %

Reference no: EM131130652

Questions Cloud

Why is depreciation as well as amortization and depletion : Why is depreciation (as well as amortization and depletion) considered a noncash charge?

How might the presence of gender bias in promotions impact : What reasons should the assistant chief convey to the fire chief to justify the absence of gender bias in the most recent class of firefighters who were promoted?

Record the redemption of the bonds assuming that interest : On January 1, 2012, when the carrying value of the bonds was $832,000, the company redeemed the bonds at 105. Record the redemption of the bonds assuming that interest for the period has already been paid.

System composed of two subsystems placed in series : (a) Let N(t) be the number of system failures in the interval [0,t]. In what case(s) will the stochastic process {N(t),t ≥ 0} be a renewal process if the random variables Sk do not all have an exponential distribution? Justify.

Annual expense ratio is netted out of the funds return : You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.90 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 2 percent. Assume that the..

Calculate the renewal function : Suppose that {N(t), t ≥ 0} is a renewal process for which the time τ between two consecutive renewals is a continuous random variable such that

What tax savings will result : If the firm purchases the grinders before year end, what depreciation expense will it be able to claim this year? if the firm reduces its reported income by the amount of the depreciation expense calculated in part a, what tax savings will result?

Explain what relevance this has for risk management : The liability of those who own a corporation is limited to their investment, while proprietors and general partners have unlimited liability for the obligations of their business. Explain what relevance this has for risk management.

Prepare the journal entry to record payment of interest : Prepare the journal entry to record payment of interest on June 1, 2011, assuming no accrual of interest from January 1, 2011, to June 1, 2011.

User Account

All Pages