Feng purchased 1,000 units of an equity mutual fund with a deferred sales charge (DSC). At the
Fantastic news! We've Found the answer you've been seeking!
Question:
Feng purchased 1,000 units of an equity mutual fund with a deferred sales charge (DSC). At the time of purchase, the fund had a net asset value per unit (NAVPU) of $22. A year later, the NAVPU is $22.77. Inflation for the period is 1.5%. Which of the following statements about Feng's investment is CORRECT?
a) Feng has a capital gain of $0.77 during the first year.
b) Feng has a nominal rate of return of 3.5% during the first year.
c) Feng's investment is covered to a maximum of $200,000 by Assuris.
d) Feng was charged a commission at the time of purchase.
Expert Answer:
Posted Date:
