Problem: A mutual fund's net asset is $50, but the fund charges, but the fund charges an exit fee of 1 percent of net asset value and a load fee of 4 percent of net asset value. An individual purchases the shares. During the year the fund distributes $2.34. The net asset value rises to $58.38 and the investor redeems the shares.
a) What is the percentage return the fund can report was achieved by its portfolio managers?
b) What is the percentage return the individual earned on the investment?
c) Why are the percentages different?