Question

Suppose an individual invests $21,000 in a load mutual fund for
two years. The load fee entails an up-front commission charge of
2.5 percent of the amount invested and is deducted from the
original funds invested. In addition, annual fund operating
expenses (or 12b-1 fees) are 0.56 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 year paid on the last day of the year. If the investor
reinvests the annual returns paid on the investment, calculate the
annual return on the mutual funds over the two-year investment
period. **(Do not round intermediate calculations. Round your
answer to 2 decimal places. (e.g., 32.16))**

Answer #1

Suppose an individual invests $28,000 in a load mutual fund for
two years. The load fee entails an up-front commission charge of
3.2 percent of the amount invested and is deducted from the
original funds invested. In addition, annual fund operating
expenses (or 12b-1 fees) are 0.63 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 $32,000 in a load mutual fund for
two years. The load fee entails an up-front commission charge of
3.6 percent of the amount invested and is deducted from the
original funds invested. In addition, annual fund operating
expenses (or 12b-1 fees) are 0.67 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 7
percent each...

Suppose an individual invests $26,000 in a load mutual fund for
two years. The load fee entails an up-front commission charge of
3.0 percent of the amount invested and is deducted from the
original funds invested. In addition, annual fund operating
expenses (or 12b-1 fees) are 0.61 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 6
percent each...

Suppose an individual invests $32,000 in a load mutual fund for
two years. The load fee entails an up-front commission charge of
3.6 percent of the amount invested and is deducted from the
original funds invested. In addition, annual fund operating
expenses (or 12b-1 fees) are 0.67 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 7
percent each...

Suppose an individual invests $29,000 in a load mutual fund for
two years. The load fee entails an up-front commission charge of
3.3 percent of the amount invested and is deducted from the
original funds invested. In addition, annual fund operating
expenses (or 12b-1 fees) are 0.64 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 9
percent each...

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 $10,000 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 0.80 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...

You have $10,000 to invest and are considering two mutual funds:
No-load Fund and Economy Fund. The No-load Fund charges a 12b-1 fee
of 1% and maintains an expense ratio of 0.50%. The Economy Fund
charges a front-end load of 4%, but has no 12b-1 fee and an expense
ratio of 0.50%. Assume that the rate of return on both funds’
portfolios (before any fees) is 8% per year.
If you plan to buy and hold for three years, which...

An investor is considering investing into a mutual fund. For a)
and b), alculate the amount available after 20 years assuming that
the investor reinvests all distributions. All funds considered
generate a 10% annual return throughout the period and the amount
invested annually is always $3000.
a) The first fund charges no fees on entry or exit or on an
annual basis.
b) The second fund charges a 5% load fee so that only $2850 is
actually invested in the...

You are considering an investment in a mutual fund with a 4%
load and an expense ratio
of 0.5%. You can invest instead in a bank CD paying 6%
interest.
Now suppose that instead of a front-end load the fund assesses a
12b-1 fee of 0.5% per
year. What annual rate of return must the fund portfolio earn for
you to be better off in
the fund than in the CD? Does your answer in this case depend on
your...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 17 minutes ago

asked 17 minutes ago

asked 48 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago