A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for$15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell3,000 shares on November 30, 2021, when the share price was at $9.55/share. Hisinvestment broker counselled him not to sell as the fund was a back-end loaded fund.Year funds are redeemed/soldWithin the first yearIn the second yearIn the third yearIn the fourth yearIn the fifth yearIn the sixth yearAfter the sixth yearDeferred sales charge6%5%4%3%2%1%0%a) What is the amount that Max will receive for the sale of these shares (ignoreincome taxes)?Calculate the amount that Max will receive:

The back end charge or deferred sales charges is a fee paid on the selling of shares before…

Answered: A year and half ago, Max purchased…

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

Problem 1PS

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Similar questions

Daniel invested $10,000 at time "0" in a mutual fund that guaranteed a return of 5% per year and after 5 years invested $20,000 in another guaranteed fund at 4 ½ % return. After 20 years since the first investment, how much money in total will he have in both funds? $116,984 O $65,239 O $61,000 $67, 215
At the start of the year, Piotr has an investment fund worth $30,000.00. 4 months later the fund is worth $30,750.00 and Piotr deposits another $3,000.00. 4 months after that, the fund is worth $34,425.00 and Piotr withdraws the $3,000.00 his deposited the time before. At the end of the year the fund is worth $31,425.00. a) What is the Dollar Weighted Return for Piotr's investment? b) What is the Time Weighted Return for the investment fund? c) What would the fund balance at the end of year have to be to make the Time Weighted Return for the year equal the Dollar Weighted Return for the year? d) In this case (TWR = DWR) what was the return on the investment fund in the last time period?
A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)?| Calculate the amount that Max will receive: b) Knowing that capital losses are applied against capital gains, what would be the overall taxes payable if Max sold shares in another company called Save The Day Inc. which resulted in a capital gain in 2021 of $50,000 and the shares in point a)? Max is a resident of Quebec and in the highest tax bracket. See…
An open-end mutual fund owns 1,000 shares of Dunkin Donut priced at $14.20/sh. The fund also owns 2,000 shares of Starbucks priced at $27.50/sh., and 5,000 shares of Gino’s Pizza priced at $12.00/sh. The fund itself has 4,000 of its own shares outstanding. What is the NAV of this mutual fund? A. $12.92 B. $35.80 C. $16.15 D. $17.90 E. $32.30
Your friend never took a personal finance class, but found out you did. So he comes to you for advice. He has two funds offered through his employer. One is a high growth mutual fund with 10% growth. The other is a moderate growth index fund offering 7% growth. At first glance it seems like an obvious choice, but the mutual fund is taking a 2.7 % fee of your friends $500 deposit, while the index fund is taking only a 0.7% fee. Over his 40 year career, what is the future value of the high growth fund after accounting for the fee? I A) $142,832.61 B $1,514,331,61 C) $1,028,330.61 D $1,428,328.61 E $428,332.61
Mr. Jonas invested a total of &100,000 in three mutual funds: a growth fund that lost 8%, a balanced fund that gained 3%, and a bond fund that gained 2%. As a result, he lost $1600 on his investment. If he invested $20,000 more in the growth fund in the bond fund, how much did he invest in each fund?
Nikul

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