Question

Vora Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%. Vora fund charges a front- end load of 2%, but has no 125-1 fee and an expense ratio of 0.20%. Assume the rate of return on both funds' portfolios (before any fees) is 10% per year. a. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Loaded-Up Fund Economy Fund b. How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Loaded-Up Fund Economy Fund c. How much will an investment of $100 in each fund grow to after 14 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Loaded-Up Fund Economy Fund

Answer 1

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C w ENG 04:53 25-06-2020 48 25 Х AC187 AB AC AD AE AF AG AH AI AJ AK AL AM 167 168 169 170 171 172 173 LOADED FUND NO FRONT LOAD FORMULA = INVESTMENT*(1-FRONT LOAD)*(1+ RETURN -(12b-1 fee + EXPENSES))^n ECONOMY FUND NO 12b-1 FEE FORMULA = INVESTMENT*(1-FRONT LOAD)*(1+ RETURN -(12b-1 fee + EXPENSES))^n a LOADED FUND ECONOMY FUND 1 YEAR = 1 YEAR = 108.20 [= 100*(1-0)*(1+ 10% - (1% + 0.8%))^1] 107.60 [= 100*(1-2%)*(1+ 10% -(0% + 0.2%))^1] b LOADED FUND 4 YEARS = 137.06 [= 100*(1-0)*(1+ 10% - (1% +0.8%))^4] 142.44 [= 100*(1-2%)*(1+ 10% -(0% +0.2%))^4] ECONOMY FUND 4 YEARS = 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 с LOADED FUND ECONOMY FUND 14 YEARS = 14 YEARS = 301.43 = 100*(1-0)*(1+ 10% -(1% +0.8%))^14] 362.79 [= 100*(1-2%)*(1+ 10% -(0% + 0.2%))^14] STOCK DIV NAV HEDGE FUND ME EV PE EPS DIV ABNORMAL deberk MARGIN MONEY marginal tax PB PS ROPI APV ROSS price quote LEV ... +