Question: Listed below is the 10-year, per-
Listed below is the 10-year, per-share performance record of Larry, Moe, & Curley’s Growth Fund, as obtained from the fund’s May 30, 2016, prospectus.
Use this information to find LM&C’s holding period return in 2016 and 2013. Also find the fund’s rate of return over the 5-year period 2012–2016, and the 10-year period 2007– 2016. Finally, rework the four return figures, assuming the LM&C fund has a front-end load charge of 5% (of NAV). Comment on the impact of load charges on the return behavior of mutual funds.
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2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 1. Net asset value, $ 58.60 $52.92 $44.10 $59.85 $55.34 $37.69 $35.21 $34.25 $19.68 $29.82 beginning of period 2. Income from investment operations: $ 0.63 $ 0.42 $ 8.63 ($6.64) $ 1.39 $19.59 $ 10.74 $9.72 $ (6.01) $ 11.81 $20.08 $6.54 3. Net investment income $ 1.39 $ 1.35 $ 1.09 $ 0.49 $ 0.79 $ 0.37 $ 0.33 $ 0.38 $ 8.10 $ 9.39 $ 5.75 $2.73 $ 15.80 4. Net gains on securities (0.02) 5. Total from investment $9.49 $3.10 $16.13 0.36 6. Less distributions: 7. Dividends from net ($ 0.83) ($ 1.24) ($0.90) ($ 0.72) ($0.46) ($ 0.65) (S 0.37) (S0.26) ($ 0.33) ($ 0.58) 8. Distributions from ($2.42) ($3.82) ($9.02) ($6.84) ($1.78) ($3.69) ($1.88) ($1.23) (9.92) realized gains 9. Total distributions ($3.25) ($5.06) ($0.90) ($9.74) ($7.30) ($2.43) ($4.06) ($2.14) ($1.56) (10.50) 10. Net asset value, end of $64.84 $58.60 $52.92 $44.10 $59.85 $55.34 $37.69 $35.21 $34.25 $19.68 period
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