You invested $1,000 in a mutual fund with a 4% load when the NAV was $20 per share. If you sell your shares at an NAV of $24 per share, what is the return on your investment?
A) 14.8%
B) 15.2%
C) 12.5%
D) 10.8%
Answer: B
Explanation: B)
($1,000 - $30 load)/$20 = 48.5 shares (initial purchase)
$400/$25 = 16 shares (reinvested distributions)
64.5 shares
× $24
$15.48 (proceeds from sale)
$15.48 - ($1,000 + $400) = $148/$1,400 = 10.5 percent
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