Baghiben Suppose you purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2022, at an offering price of $28.90 per share.The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 1 percent. The underlying assetsin this mutual fund appreciate (including reinvested dividends) by 6 percent during 2022, and you sell back your shares at the end ofthe year. If the operating expense ratio for the New Pacific Growth Fund is 1.91 percent, what is your total return from this investment?(Assume that the operating expense is netted against the fund's return.)Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as apercent rounded to 2 decimal places.Total return%

Part 2: Explanation:Step 1: Calculate the total initial investment:Total initial investment = Number…

Answered: Suppose you purchased 2,400 shares in…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 8FPE

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