A mutual fund charges a 2% front-end load. If an investor invest $2,000 in the fund...
A mutual fund charges a 2% front-end load. If an investor invest $2,000 in the fund and the net asset value per share (NAVPS) is $5,00, how many units can he buy?
a. 408
b.400
c.386
d.392
Homework Answers
Option D is correct 392 UNITS
Step - 1 Calculation of Net Amount Invested after charging front end load
Investor Invested 2000 in the fund
Fornt end load = 2000 * 0.02 = 40
Net amount Invested for which investor will get the units = 2000 - 40 = 1960
Step 2 - Calculation of Units
No of Units = Net Amount Invested / NAVPS
No of Units = 1960 / 5 = 392
Therefore Investor can buy 392 Units
Add Answer to:
A mutual fund charges a 2% front-end load. If an investor invest
$2,000 in the fund...
You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees,...
You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $10,600 investment that does not grow if you cash out after 3 years of no gain?
You invest $1,000,000 in Fidelity China Fund. The Fund charges a front-end load of 5.75% and...
You invest $1,000,000 in Fidelity China Fund. The Fund charges a front-end load of 5.75% and an annual expense fee of 1.25% of the average asset value over the year. You believe the fund’s gross rate of return will be 11% per year. In one year, what will your investment portfolio be worth in dollar terms?
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%. How many shares of the mutual fund do you hold?
You are going to invest in a stock mutual fund with a front-end load of 5.5...
You are going to invest in a stock mutual fund with a front-end load of 5.5 percent and an expense ratio of 1.59 percent. You also can invest in a money market mutual fund with a return of 2.7 percent and an expense ratio of 0.20 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon...
The net asset value of a certain mutual fund is $44. If the fund charges a...
The net asset value of a certain mutual fund is $44. If the fund charges a 6.5% load, how many shares will I own if I invest $5,380 in this fund?
A mutual fund’s net asset value is $39.30, but the fund charges a 3 percent load...
A mutual fund’s net asset value is $39.30, but the fund charges a 3 percent load fee (front- loaded) and an exit fee of 1 percent (if redeemed in 6 months) of net asset value. An individual client purchases 10 shares of the mutual fund on Jan 5 of year 20X1. During the year 20X1, the fund distributes $3.45 capital gain and $0.75 dividend income. The net asset value rises to $42.12 on Jan 5 of year 20X2 and the...
2. Fund A charges a 2.5% front-end load and maintains an expense ratio of 75%. Fund...
2. Fund A charges a 2.5% front-end load and maintains an expense ratio of 75%. Fund B charges a front-end loan of 3% and an expense ratio of 30%. Assume the rate of return is 12% per year for both the funds. You have $25,000 to invest and you want $72,000 in 10 years for a down payment towards your dream home. Which of these two funds would you invest your money in and why? (1 pts)
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%. You sell your shares within six months at an NAV of $11 per share. The redemption fees is 3%. What is your return from this mutual fund investment?
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%. You sell your shares within six months at an NAV of $11 per share. The redemption fees is 3%. What is your return from this mutual fund investment?
One year ago, Allison purchased 350 shares of a mutual fund which has a front-end load...
One year ago, Allison purchased 350 shares of a mutual fund which has a front-end load of 5.25 percent. The NAV at the time of purchase was $30. Today, the NAV is $33. The fund had total annual expenses of 1.65 percent. There were no fund distributions this past year. What is Allison's rate of return for the year? Group of answer choices 4.76 percent -1.10 percent -1.04 percent 4.23 percent 5.00 percent You want to buy 1,200 shares of...
2. Fund A charges a 2.5% front-end load and maintains an expense ratio of 75%. Fund B charges a front-end loan of 3% and an expense ratio of 30%. Assume the rate of return is 12% per year for both the funds. You have $25,000 to invest and you want $72,000 in 10 years for a down payment towards your dream home. Which of these two funds would you invest your money in and why? (1 pts)
Most questions answered within 3 hours.
-
3) What are the typical social structures in a global city?
asked 2 hours ago -
Luther Corporation
Consolidated Balance Sheet
December 31, 2019 and 2018 (in $ millions)
Assets
2019
2018...
asked 2 hours ago -
(Expected rate of return and risk) Carter Inc. is evaluating a
security. Calculate the investment’s expected...
asked 5 hours ago -
What specific indicators can point to lack of progress for
African Americans in American society?
asked 6 hours ago -
1-The Electrons in a beam are moving at 2.7×108 m/s in an
electric field of 15000...
asked 6 hours ago -
A gas tank is a vertical cylinder. It has a radius of 1m, a
height of...
asked 7 hours ago -
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 8 hours ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 8 hours ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 9 hours ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 9 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 9 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 10 hours ago