Suppose an individual invests $30,000 in a load mutual fund…
Suppose an individual invests $30,000 in a load mutual fund for two years. There is a 3% front-end load. In addition, annual fund operating expenses are 0.70%. The annual fees are charged on the average asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 9% each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the average annual return on the mutual funds over the two-year investment period.