You purchased 3,000 shares of the New Fund at a price of $25 per share at the beginning of the year. You paid a front-end load of 4%. The securities in which the fund invests increase in value by 12% during the year. The fund's expense ratio is 1.8%. What is your rate of return on the fund if you sell your shares at the end of the year?

4.256%

Explanation:

Since the front load of 4% of the portfolio has been paid, therefore the value of the portfolio has been reduced to 96%(100%-4%).

The value of the investment has been increased by 10% with expense ratio of 1.8%, the rate of return on the fund on the shares at the end of the year shall be calculated as follows:

1+i=96%(1+10%-1.4%)

where i=rate of return on shares

1+i=1.04256

i=1.04256-1=4.256%

answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;