Question: A mutual fund charges 6% front-end load and 1% operating and 12b-1 expenses. At the beginning of the year, the fund has $100 million assets

A mutual fund charges 6% front-end load and 1% operating and 12b-1 expenses. At the beginning of the year, the fund has $100 million assets under management and 10 million shares outstanding. During the year the value of assets held by the fund increases by 12% and the fund receives dividends of $1 million. What is the fund's NAV at the end of the year? (The number of mutual fund shares outstanding is still 10 million at the end of the year.)

$11.09

$10.42

$11.19

$10

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