What is percentage return individual earned on investment

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Reference no: EM131523644

A mutual fund’s net asset value is $50, but the fund charges an exit fee of 1 percent of net asset value and a 4 percent load fee (front-loaded). An individual client purchases the shares of the mutual fund. During the year, the fund distributes $2.34. The net asset value rises to $58.38 and the investor redeems the shares.

a) What is the percentage return the fund can report that was achieved by its portfolio managers?

b) What is the percentage return the individual earned on the investment?

Why is this answer different from the answer in part (a)?

Reference no: EM131523644

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