Answer:
Total return is -2.24%
Explanation:
Calculation of the initial NAV
Initial NAV = Offering price * (1-% of front end load)
Initial NAV = $45.50 * (1 - 5%)
Initial NAV = $45.50 * 0.95
Initial NAV = $43.225
Calculation of the final NAV
Final NAV = Initial NAV * (1 + (Appreciation rate - Operating expenses ratio)
Final NAV = $43.225* (1 + (5% - 1.05%))
Final NAV = $43.225 * 1 + 0.0395
Final NAV = $43.225 * 1.0395
Final NAV = $44.9323875
Calculation of the sales proceeds per share
Sales proceeds per share = Final NAV * (1 - % of back end load)
Sales proceeds per share = $44.9323875 * ( 1 - 1%)
Sales proceeds per share = $44.483063625
Calculation of the total return
Total return = (Sales proceeds per share - Offering price) / Offering price
Total return = ($44.483063625 - $45.50) / $45.50
Total return = -2.24%
