a. Fund A has a front-end load of 5.75%. You are considering an investment of $30,000. How much will you pay in commissions and how much will be invested for you after commissions? (You must show your calculations for credit). Amount of commission paid Amount invested after commission Calculations: 3. Index funds offer you the opportunity to invest at a lower annual expense ratio than actively managed mutual funds. This is because it costs less to run an index fund than it does to run +n actively managed fund. Why does it cost less to run an index fund?
a. Fund A has a front-end load of 5.75%. You are considering an investment of $30,000. How much will you pay in commissions and how much will be invested for you after commissions? (You must show your calculations for credit). Amount of commission paid Amount invested after commission Calculations: 3. Index funds offer you the opportunity to invest at a lower annual expense ratio than actively managed mutual funds. This is because it costs less to run an index fund than it does to run +n actively managed fund. Why does it cost less to run an index fund?
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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Transcribed Image Text:a. Fund A has a front-end load of 5.75%. You are considering an investment of $30,000.
How much will you pay in commissions and how much will be invested for you after
commissions? (You must show your calculations for credit).
Amount of commission paid
Amount invested after commission
Calculations:
3. Index funds offer you the opportunity to invest at a lower annual expense ratio than actively
managed mutual funds. This is because it costs less to run an index fund than it does to run
+n actively managed fund. Why does it cost less to run an index fund?
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