aluate the performance of three mutual funds. One fund has a load, the second has a backend load the rd is a no load fund. Fund A B C Load Front end load fee 4 % Back end Load fee 3 % No Load fee Required: The No. of shares purchases today with Rs. 1000 b. The total profit in rupees for the year. The holding period rate of return. C NAVO Rs. 12 Rs. 24 Rs. 36 NAVI Rs. 15 Rs. 30 Rs. 45
aluate the performance of three mutual funds. One fund has a load, the second has a backend load the rd is a no load fund. Fund A B C Load Front end load fee 4 % Back end Load fee 3 % No Load fee Required: The No. of shares purchases today with Rs. 1000 b. The total profit in rupees for the year. The holding period rate of return. C NAVO Rs. 12 Rs. 24 Rs. 36 NAVI Rs. 15 Rs. 30 Rs. 45
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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![se
aluate the performance of three mutual funds. One fund has a load, the second has a backend load the
rd is a no load fund.
Fund
A
B
C
Load
Front end load fee 4 %
Back end Load fee 3 %
No Load fee
e.
NAVO
Rs. 12
Rs. 24
Rs. 36
NAVI
Rs. 15
Rs. 30
Rs. 45
Required:
b.
The No. of shares purchases today with Rs. 1000
The total profit in rupees for the year.
c. The holding period rate of return.
d.
Which fund should be accepted? & why
Assume that you placed a Rs. 1000 investment with a mutual fund that charged an 8.5% load.
Management and other fees charged by the fund total 1.10% per annum. Ignoring other costs,
during five years, what annual return would the fund have to produce to equal the value that
you initial investment would have earned in a saving account paying 5% interest? (Assume
annual compounding of income and no taxes.
f. A mutual fund has 1000 shares of PraSayara Co., currently trading at Rs. 150 and 2000 shares of
Reva Co., currently trading at Rs. 140. The fund has issued 10000 shares.
i.
What is the NAV of the fund?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfdfa887-85d0-4502-8a0f-411b40f9fddd%2F6715843d-6d92-4648-be77-35efdf2eb817%2F2uas26p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:se
aluate the performance of three mutual funds. One fund has a load, the second has a backend load the
rd is a no load fund.
Fund
A
B
C
Load
Front end load fee 4 %
Back end Load fee 3 %
No Load fee
e.
NAVO
Rs. 12
Rs. 24
Rs. 36
NAVI
Rs. 15
Rs. 30
Rs. 45
Required:
b.
The No. of shares purchases today with Rs. 1000
The total profit in rupees for the year.
c. The holding period rate of return.
d.
Which fund should be accepted? & why
Assume that you placed a Rs. 1000 investment with a mutual fund that charged an 8.5% load.
Management and other fees charged by the fund total 1.10% per annum. Ignoring other costs,
during five years, what annual return would the fund have to produce to equal the value that
you initial investment would have earned in a saving account paying 5% interest? (Assume
annual compounding of income and no taxes.
f. A mutual fund has 1000 shares of PraSayara Co., currently trading at Rs. 150 and 2000 shares of
Reva Co., currently trading at Rs. 140. The fund has issued 10000 shares.
i.
What is the NAV of the fund?
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