You purchased 1,000 shares of the new fund at a price of $39 per share at the beginning of the year. you paid a front-end load of 3.4%. the securities in which the fund invests increase in value by 8% during the year. the fund's expense ratio is 1.4%. what is your rate of return on the fund if you sell your shares at the end of the year? (do not round intermediate calculations. round your answer to 2 decimal places.)

2.97%

Explanation:

cost of shares = (NAV0 × shares) ÷ (1 - FL)

                         = ($39 × 1,000) ÷ (1 - 0.034)

                          = 40,372.67

NAV1 = NAVo (1 + investment return - expense ratio)

= $39 × (1 + 0.08 - 0.014)

= 41.574

value of shares = NAV1 × Shares

                          = 41.574 × 1,000

                           = 41,574

Return = (value of shares ÷ cost of shares) - 1

           = (41,574 ÷ 40,372.67) - 1

           = 2.97%

answer; enforce the rules;