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Question 17 0 out of 10 points Two years ago an investor invested $21 thousand into a fund with a 4.8% front-end load, a 1.6% annual expense ratio, X and a NAV of $34.54 per share. The securities in the fund increased by 8.7 percent each year, and then the investor sold the fund. What was the investor's total holding period return? Enter answer in percents, accurate to two decimal places. Selected Answer: 81.46% 8.91 + 1% Correct Answer: Response Feedback Walk through this investment one step at a time over the course of two years, to calculate your final value, then compare with initial. Note that all rates will compound rather than add.

Answer 1

money Front Inrested End load = $ 21,000 = 4.8% of $21000 - $1008 after deducting) = $21000 = $ 1008 front and load ) Actul investment 19g92 Securities increase rate (per year) = 8.7% Protfolio value after 1 year = 19992 x 1.087 = 421731.304 Annual Expense = 1.6% of $21731.304 $347.70 Net protfolio value after expenses a $21383.60 protfolio value after syears = 8.7% increase in $21383.60 = $23243.97 Annual Expense = 1.6% of $2243.97 = $37.90 Net protfolio value after years after $23243.97 - $3719 deducting expenses = $22872106 wet profit in 2 years = Net protfolio value af Invested expenses = $22872.06 - $ 21000 $ 1872.06

e Investors total holding period return = 00 Net profit in two years money Invested x 100 % = % $1872:06 - x 100 $21000 = 8.9l ol.