Here's an example of how breakpoint discounts on sales commissions for mutual fund investors work:Sales chargeLess than $25,000, 5.75%$25,000 to $49,999, 5.50%$50,000 to 99,999, 4.75%$100,000 to $249,999, 3.75%Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.43.a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to the nearest share even if itis less than 5.)Minimum amount of shares25,000b. What minimum amount of shares must Nancy purchase to have a sales charge of 4.75%? (Round up to the nearest share even if itis less than 5.)Minimum amount of shares50,000c. What minimum amount of shares must Nancy purchase to have a sales charge of 3.75%? (Round up to the nearest share even if itis less than 5.)Minimum amount of shares100,000d. What would be the total purchase price for (a), (b), or (c)? (Round your answers to the nearest cent.)Total purchase price(a)(b)(c)

NAV refers to net asset value. For a mutual fund its NAV = total assets - total liabilities

Here's an example of how breakpoint discounts on sales commissions for mutual fund investors work: ales charge Less than $25,000, 5.75% $25,000 to $49,999, 5.50% $50,000 to 99,999, 4.75% $100,000 to $249,999, 3.75% lancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.43. . What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to the nearest share even if it s less than 5.)

Here's an example of how breakpoint discounts on sales commissions for mutual fund investors work: ales charge Less than $25,000, 5.75% $25,000 to $49,999, 5.50% $50,000 to 99,999, 4.75% $100,000 to $249,999, 3.75% lancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.43. . What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to the nearest share even if it s less than 5.)

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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es Required information [The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Stock fund (S) 15% 9% Bond fund (B) The correlation between the fund returns is 0.15. Expected Return Expected return Standard deviation Required: What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) % % Standard Deviation 32% 23%
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Here’s an example of how breakpoint discounts on sales commissions for mutual fund investors work: Sales charge Less than $25,000, 5.75% $25,000 to $49,999, 5.50% $50,000 to 99,999, 4.75% $100,000 to $249,999, 3.75%= Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.43. a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to the nearest share even if it is less than 5.) What the minuim amount of shares? b. What minimum amount of shares must Nancy purchase to have a sales charge of 4.75%? (Round up to the nearest share even if it is less than 5.) What the minum amout of shares? What minimum amount of shares must Nancy purchase to have a sales charge of 3.75%? (Round up to the nearest share even if it is less than 5.) What the minuim amout of shares? What would be the total purchase price for (a), (b), or (c)? (Round your answers to the nearest cent.) Total Purchase Price for A B C
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