You are considering two mutual funds, Fund A and Fund B, which both return 8.75%. Fund...
- You are considering two mutual funds, Fund A and Fund B, which both return 8.75%. Fund A has an expense ratio of 0.70% and 12b-1 fees of 1.80%. Fund B has a front end load of 2.75%, no 12b-1 fees and an expense ratio of 0.21%. The purpose of the investment is to put your brand new baby thru college in 18 years, which is the better choice? Show your work.
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You are considering two mutual funds, Fund A and Fund B, which
both return 8.75%. Fund...
Suzy is considering two mutual funds. Fund ABC is expected to earn 11%. Fund XYZ is...
Suzy is considering two mutual funds. Fund ABC is expected to earn 11%. Fund XYZ is expected to earn 12%. The expense ratio of ABC is 1.1% while the expense ratio for XYZ is 0.95%. Fund XYZ also has a 6% front-end load. Suzy has $5000 to invest. Which of the following is true? Fund ABC will earn 1.15% less than XYZ after five years. Fund ABC will earn 1% more than XYZ after five years. Fund ABC will earn...
You are considering an investment in a mutual fund with a 5% load and expense ratio...
You are considering an investment in a mutual fund with a 5% load and expense ratio of 0.1%. You can invest instead in a bank CD paying 2% interest a. If you plan to invest for 2 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate...
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.70%. Economy...
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.70%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and an expense ratio of 0.30%. Assume the rate of return on both funds’ portfolios (before any fees) is 8% per year. How much will an investment of $100 in each fund grow to after 12 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Loaded-Up Fund $...
The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund....
The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund. The front end load is 2%. The investment return of the fund for the year was 10%. You sell your shares. The redemption fees is 3% and the expense ratio is 4%. What is your return from this mutual fund investment?
as an expense ratio of 0.80 percent per year. Flounder Mutual Fund ratio of 0.30%, but...
as an expense ratio of 0.80 percent per year. Flounder Mutual Fund ratio of 0.30%, but also has a front-end load of 1.00%. Suppose that the has a lower annual rate of re expense turn on both funds is 6%, before fees. How much will a $10,000 investment in each fund grow to after 9 years?
Suppose an individual invests $5,000 in a load mutual fund for two years. The load fee...
Suppose an individual invests $5,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.75 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each...
Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee...
Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.60 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each...
Suppose an individual invests $50,000 in a load mutual fund for two years. The load fee...
Suppose an individual invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.90 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each...
Suppose an individual invests $25,000 in a load mutual fund for two years. The load fee entails an up-front commission...
Suppose an individual invests $25,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.85 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each...
in a mutual fund with a 7% load and expense ratio of 075%. You can Invest...
in a mutual fund with a 7% load and expense ratio of 075%. You can Invest instead in a bank an CD paying 2% interest. a. If you plan to Invest for 4 years, what annual rate of return must the fund portfollo earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round Intermediate calculations. Round your answer to 2 declmal places.) b. What annual rate of return...
You are considering an investment in a mutual fund with a 5% load and expense ratio of 0.1%. You can invest instead in a bank CD paying 2% interest a. If you plan to invest for 2 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate...
as an expense ratio of 0.80 percent per year. Flounder Mutual Fund ratio of 0.30%, but also has a front-end load of 1.00%. Suppose that the has a lower annual rate of re expense turn on both funds is 6%, before fees. How much will a $10,000 investment in each fund grow to after 9 years?
Suppose an individual invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.90 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each...
Suppose an individual invests $25,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.85 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each...
in a mutual fund with a 7% load and expense ratio of 075%. You can Invest instead in a bank an CD paying 2% interest. a. If you plan to Invest for 4 years, what annual rate of return must the fund portfollo earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round Intermediate calculations. Round your answer to 2 declmal places.) b. What annual rate of return...
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