None You have decided to invest $11,300 in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return of 14.05%on the portfolio (gross of fees). However, Pinnacle offers several classes of funds. Therefore, you can choose to pay a front load of11.5% and escape 12-b1 fees, or you can avoid the load fee by paying 12-b1 fees of 0.75%.Required:a. If your investment horizon is 16 years, what is your expected terminal wealth under each strategy?b. Which option should you choose?Complete this question by entering your answers in the tabs below.Required ARequired BIf your investment horizon is 16 years, what is your expected terminal wealth under each strategy?Note: Round your answer to 2 decimal places.No-load fundFront-load fund< Required ARequired B >You have decided to invest $11,300 in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return of 14.05%on the portfolio (gross of fees). However, Pinnacle offers several classes of funds. Therefore, you can choose to pay a front load of11.5% and escape 12-b1 fees, or you can avoid the load fee by paying 12-b1 fees of 0.75%.Required:a. If your investment horizon is 16 years, what is your expected terminal wealth under each strategy?b. Which option should you choose?Complete this question by entering your answers in the tabs below.Required A Required BRequirementWhich option should you choose?Required B >No-loadFront-load

Front end load is the amount of deduction to be made at the initial stage of purchase of mutual…

You have decided to invest $11,300 in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return o on the portfolio (gross of fees). However, Pinnacle offers several classes of funds. Therefore, you can choose to pay a front l 11.5% and escape 12-b1 fees, or you can avoid the load fee by paying 12-b1 fees of 0.75%. Required: a. If your investment horizon is 16 years, what is your expected terminal wealth under each strategy? b. Which option should you choose? Complete this question by entering your answers in the tabs below. Required A Required B

You have decided to invest $11,300 in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return o on the portfolio (gross of fees). However, Pinnacle offers several classes of funds. Therefore, you can choose to pay a front l 11.5% and escape 12-b1 fees, or you can avoid the load fee by paying 12-b1 fees of 0.75%. Required: a. If your investment horizon is 16 years, what is your expected terminal wealth under each strategy? b. Which option should you choose? Complete this question by entering your answers in the tabs below. Required A Required B

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 you have a medium risk-tolerance, and you want an annual return of $355. You decide to invest part in Fund A and the rest in Fund B. How much do you need to invest in Fund A? $ . Round to the nearest cent. Appreciate it thanks!!@@
Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of your clients. Whichever fund you recommend, your clients will then combine it with risk-free borrowing and lending depending on their desired level of risk. Expected Return Volatility Fund A 7% 3% Fund B 10% 4% Fund C 9% 4% Which fund would you recommend without knowing your client's risk preference?
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40) You are considering investing in a no-load mutual fund with an annual expense ratio of 0.60% and an annual 12b-1 fee of 0.75%. You could also invest in a bank CD paying 6.50% per year. What minimum annual rate of return must the fund earn to make you better off in the fund than in the CD? A) 7.10% B) 7.45% C) 7.25% D) 7.85%
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