A fund is set up to charge a load.Its net asset value is $17.70 and its offer price is $18.60.Assume the fund increased in value by $.40 the first month after your purchased 100 shares.By what percentage would the net asset value of the shares have to increase for you to break even?

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Quizplus · Accepted Answer

To break even, the net asset value (NAV) must increase to the offer price. The initial NAV is $17.70, and the offer price is $18.60. The increase needed is $18.60 - $17.70 = $0.90. The percentage increase required is ($0.90 / $17.70) * 100% = 5.08%.

A Fund Is Set Up to Charge a Load