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23. Alisha is interested in a specific mutual fund. She has $45,000 to invest now and will be able to add another $7,000 to her account in less than a year. She indicates that she considers mutual funds to be long term investments. You are considering three options for Alisha's investment purpose .The first is to have her invest in A shares and sign a letter of intent to invest the extra $7,000 sometime in the next 13 months. The second is tohave her invest in B shares whose prospectus states that the shares will be covert to A shares after 7 years. The third is to have her invest in C shares. If breakpoints kick in at $25,000 and become more significant the higher the invested amount, which of those options is most suitable for Alisha? a. C shares b. B shares c. A shares d. Not any of the above mentioned

23. Alisha is interested in a specific mutual fund. She has $45,000 to invest now and will be able to add another $7,000 to her account in less than a year. She indicates that she considers mutual funds to be long term investments. You are considering three options for Alisha's investment purpose .The first is to have her invest in A shares and sign a letter of intent to invest the extra $7,000 sometime in the next 13 months. The second is tohave her invest in B shares whose prospectus states that the shares will be covert to A shares after 7 years. The third is to have her invest in C shares. If breakpoints kick in at $25,000 and become more significant the higher the invested amount, which of those options is most suitable for Alisha? a. C shares b. B shares c. A shares d. Not any of the above mentioned

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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23. Alisha is interested in a specific mutual fund. She has $45,000 to invest now and will be able to add another $7,000 to her account in less than a year. She indicates that she considers mutual funds to be long term investments. You are considering three options for Alisha's investment purpose .The first is to have her invest in A shares and sign a letter of intent to invest the extra $7,000 sometime in the next 13 months. The second is tohave her invest in B shares whose prospectus states that the shares will be covert to A shares after 7 years. The third is to have her invest in C shares. If breakpoints kick in at $25,000 and become more significant the higher the invested amount, which of those options is most suitable for Alisha? a. C shares b. B shares c. A shares d. Not any of the above mentioned
Transcribed Image Text:23. Alisha is interested in a specific mutual fund. She has $45,000 to invest now and will be able to add another $7,000 to her account in less than a year. She indicates that she considers mutual funds to be long term investments. You are considering three options for Alisha's investment purpose .The first is to have her invest in A shares and sign a letter of intent to invest the extra $7,000 sometime in the next 13 months. The second is tohave her invest in B shares whose prospectus states that the shares will be covert to A shares after 7 years. The third is to have her invest in C shares. If breakpoints kick in at $25,000 and become more significant the higher the invested amount, which of those options is most suitable for Alisha? a. C shares b. B shares c. A shares d. Not any of the above mentioned
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