Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 8% per year. Required: 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.) Mutual Fund Loaded-Up Fund Economy Fund Investment Values b. How much will an investment of $100 in each fund grow to after 2 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Loaded-Up Fund Economy Fund Investment Values

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 8% per year. Required: 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.) Mutual Fund Loaded-Up Fund Economy Fund Investment Values b. How much will an investment of $100 in each fund grow to after 2 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Loaded-Up Fund Economy Fund Investment Values

Name: Ee 285. c. How much will an investment of $100 in each fund grow to af
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Description: Ee 285. c. How much will an investment of $100 in each fund grow to after 14 years? (Do not round intermediate calculations. Round youranswers to 2 decimal places.)Mutual FundLoaded-Up FundEconomy Fund.InvestmentValues Loaded-Up Fund charges a 12b-1

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 2FPE

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Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi mutual fund. The value of each investment at the end of each subsequent year isprovided in the table:Year Stivers ($) Trippi ($)1 11,000 5,6002 12,000 6,3003 13,000 6,9004 14,000 7,6005 15,000 8,5006 16,000 9,2007 17,000 9,9008 18,000 10,600Which of the two mutual funds performed better over this time period?
Q1. What is a mutual fund? In what sense is it a financial institution?. Q2. How is the net asset value (NAV) of a mutual fund determined? What is meant by the term marked-to-market daily? Q3. An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain $2, and charges a fee of $2 when the fund is sold on year for $52.50. What is the net rate of return from this insurance? Formula for Question 3: Net gain = Dividend + capital gain + profit from fund sold – fee
Problem 4-18 (Algo) Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.20%. Assume the rate of return on both funds portfolios (before any fees) is 8% per year. Required: 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.) Mutual Fund Loaded Up Fund Economy Fund Investment Values 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.) Mutual Fund Investment Values
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $120 Year 1 132 Year 2 146 Year 3 133 Year 4 128 Year 5 123 Required: a. Calculate the investment returns for each year. b. Compute the arithmetic mean return. c. Calculate the geometric mean return.
An investor purchases a mutual fund share for $100.2. The fund pays dividends of $2.2, distributes a capital gain of $1.1, and charges a fee of $3 when the fund is sold one year later for $95.3. What is the net rate of return from this investment? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
Calculate the sales charge (in $) and sales charge percent for the mutual fund. (Round percents to one decimal place.) Fund OfferPrice Net AssetValue SalesCharge SalesCharge % Northstar A: MuFl A $13.45 $12.83
D3) Finance You invest in a mutual fund that charges a 3% front-end load, 1% operating costs, and a 1% 12b-1 fees. What are the total fees in year 1 on an initial investment of $20,000 with 10% annual growth in fund's asset value, or NAV? Note that "initial investment" means it is before the deduction of frontend load.
If a mutual fund's net asset value is $24.00 and the fund sells its shares for $25.20, what is the load fee as a percentage of the net asset value? Round your answer to two decimal places. %
A fund starts the year with NAV 46 per share. Over the year, the fund pays out income of 2.5 per share and capital gains distributions of 2.5 per share. Assets in the portfolio grew (shrank) by -0.0025, and an expense ratio of 0.014 is charged at the end of the year.. What is the rate of return on the fund? (Hint: calculate NAV1 first) O 0.0969 O 0.1076 O 0.1002 O 0.0877 O 0.0922
● Following results were obtained for the period of six months ending September 2022. Birla Sundaram Sun Nifty Rf Rp 25.38 36.28 45.56 36.74 9.00 Sigma 4.0 6.86 4.31 3.69 Beta 0.23 0.52 0.63 1.00 Using inputs, rank the funds according to the predictive ability of the fund's manager.
Calculate the sales charge (in $) and sales charge percent for the mutual fund. (Round percents to one decimal place.) Sales Charge Offer Net Asset Sales Fund Price Value Charge % Northstar A: MUFI A $13.65 $12.83 $ 0.82 X %
3. A fund grows by the force of interest 8 (t) = k max (t, 1 t) for t > 0, and where k > 0. A deposit of 1000 is made at time t = 0.25, and a withdrawal of 500 is made at time t 0.75. At time t 1, the fund has a balance of 750. Find the amount of interest earned over the interval (0.25,0.50). This is the amount of interest earned in the second quarter.