Ginny is planning on holding her shares for at least a year and wants a fund that will cost her as little in fees as possible. If IntRA r charges a deferred sales charge and MRGG r charges a redemption fee, then she is best off investing in which of the following funds? O GibEx p IntRA r O Majtrk MRGGr Grade It Now Save & Continue Continue without saving 5. Comparing loads and fees Ginny wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess each fund in terms of the fees each charges. Fund NAV Net Chg. YTD % Ret. GbEx p $15.32 0.00 2.4 IntRA r $23.77 0.10 5.3 MAGG $35.81 0.24 7.8 Majtrk $40,21 0.33 8.9 Suppose Majtrk charges a commission of 2%. This shares, only $ an example of a relatively low-load fund. If Ginny purchases $4,000 worth of MajT will actually be invested. This means that the commission-as a percentage of the amount invested-is equal to The mutual fund GibEx p is a no-load fund that imposes a Funds that charge this type of fee on reinvested dividends as well as on the initial investment. generally be expected to outperform funds that do not charge these fees.
Ginny is planning on holding her shares for at least a year and wants a fund that will cost her as little in fees as possible. If IntRA r charges a deferred sales charge and MRGG r charges a redemption fee, then she is best off investing in which of the following funds? O GibEx p IntRA r O Majtrk MRGGr Grade It Now Save & Continue Continue without saving 5. Comparing loads and fees Ginny wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess each fund in terms of the fees each charges. Fund NAV Net Chg. YTD % Ret. GbEx p $15.32 0.00 2.4 IntRA r $23.77 0.10 5.3 MAGG $35.81 0.24 7.8 Majtrk $40,21 0.33 8.9 Suppose Majtrk charges a commission of 2%. This shares, only $ an example of a relatively low-load fund. If Ginny purchases $4,000 worth of MajT will actually be invested. This means that the commission-as a percentage of the amount invested-is equal to The mutual fund GibEx p is a no-load fund that imposes a Funds that charge this type of fee on reinvested dividends as well as on the initial investment. generally be expected to outperform funds that do not charge these fees.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Ginny is planning on holding her shares for at least a year and wants a fund that will cost her as little in fees as possible. If IntRA r charges a deferred
sales charge and MRGG r charges a redemption fee, then she is best off investing in which of the following funds?
O GibEx p
IntRA r
O Majtrk
MRGGr
Grade It Now
Save & Continue
Continue without saving
Transcribed Image Text:5. Comparing loads and fees
Ginny wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess
each fund in terms of the fees each charges.
Fund
NAV
Net Chg. YTD % Ret.
GbEx p $15.32
0.00
2.4
IntRA r $23.77
0.10
5.3
MAGG
$35.81
0.24
7.8
Majtrk
$40,21
0.33
8.9
Suppose Majtrk charges a commission of 2%. This
shares, only $
an example of a relatively low-load fund. If Ginny purchases $4,000 worth of MajT
will actually be invested. This means that the commission-as a percentage of the amount invested-is equal to
The mutual fund GibEx p is a no-load fund that imposes a
Funds that charge this type of fee
on reinvested dividends as well as on the initial investment.
generally be expected to outperform funds that do not charge these fees.
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