A mutual fund has a 1.69% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVs after fees for each year? What are the after-fee returns each year?
A mutual fund has a 1.69% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVs after fees for each year? What are the after-fee returns each year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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7. Impacts of Costs on Returns. A mutual fund has a 1.69% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVs after fees for each year? What are the after-fee returns each year?
Transcribed Image Text:Money to Invest $10000.00
$124.655
NAV
Expense ratio
Year 1 return
Year 2 return
Year 3 return
Year 4 return
Year 5 return
1.6%
5%
-12%
18%
4%
23%
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