A letter of intent for a mutual fund allows an investor to:ABCDReceive a breakpoint for purchases over an extended period of timeAvoid capital gains taxes by reinvesting proceeds from a sale within 90 daysAvoid a surrender charge on "B" shares if they agree to re-invest their funds within six monthsContinue to purchase a mutual fund after it is closed to new investors

The breakpoint is generally listed in the prospectus of the mutual fund and it will generally…

Answered: and allows an investor to: r purchases…

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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11. For which of the following clients would a mutual fund C share be most suitable? Assume that breakpoints kick in at $25,000. a. Jordan, who has $15,000 to invest now and intends to maintain her account for at least 5 years. b. Thelma, who has $20,000 to invest now and intents to add $5,000 to the account by the end of the each of the next three years c. Mary, who has $35,000 to invest and intends to maintain her fund for at least five years d. Mike, who has $5,000 to invest now, will add an additional $5,000 in six months, but doesn't intend to maintain his investment for much more than a year
Which of the following activities result in an increase (decrease) in a firm’s cash? Decrease fixed assets Decrease accounts payable Pay dividends Sell common stock Decrease accounts receivable Increase notes payable
An engineer invests $50,000 in bonds paying dividends of $1,000 per year for 10 years. At 10 years, the engineer sells the bonds for $70,000. Calculate the rate of return on investment using net future worth analysis.
Calculate the number of shares purchased with a $5,000 investment in a no load mutual fund with a net asset value of $7.45. The number of shares purchased is (Type an integer or decimal rounded to the nearest thousandth as needed.). COLL
Calculate the net asset value and dollars and the number of shares purchased for the mutual fund. Round shares to thousands three decimal places?
Find the following for the indicated mutual fund when the given number of shares is bought and sold 1 year later after receiving the distribution shown in the following table. (Round your answers to two decimal places.) Name Shares Bought Shares Sold Distribution SouthCo 200 at $40 200 at $50 $0.60 per share (a) Find the capital appreciation. _______________ %(b) Find the yield. ______________%(c) Find the return. ___________________%
Question 4 An investor bought 100 shares of following 3 securities. You are required to calculate overall HPY and HPR and also suggest to investors by using HPR and HPY about the most profitable security. Bought FFC for Rs. 102 and sell for Rs. 115 ENG for Rs. 150 and sell for Rs. 172MEL for Rs. 456 and sold for Rs. 421
You purchased three contracts of "XYZ December 4 2015 84.00 Call" at $5.50 per options and exercised it when the underlying stock price was $92. What was your profit and return on the investment, excluding the commisions.
Over a four-year period, Matt Ewing purchased shares in the ClearBridge Large-Cap Value Fund. Use the following information: Year Investment Amount Price per Share 2018 $ 3,100 $ 29 per share 2019 3,100 37 per share 2020 3,100 34 per share 2021 3,100 36 per share At the end of four years, what is the total amount invested? At the end of four years, what is the total number of mutual fund shares purchased? At the end of four years, what is the average cost for each mutual fund share?
You are given the following information: Boston Equity Mutual Fund Total assets $ 904 million Total liabilities $ 9 million Total number of shares 42 million Calculate the net asset value for the Boston Equity mutual fund. Note: Round your answer to 2 decimal places.
Estimating Returns. Hunter invested $8,200 in shares of a load mutual fund. The load of the fund is 7%. When Hunter purchased the shares, the NAV per share was $81. A year later, Hunter sold the shares at a NAV of $78 per share. What is Hunter's return from selling his shares in the mutual fund? Hunter's return from selling his shares in the mutual fund is -4.65 %. (Round to two decimal places and include a negative sign where appropriate.)
Vinay

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and allows an investor to: r purchases over an extended period of time es by reinvesting proceeds from a sale within 90 days ge on "B" shares if they agree to re-invest their funds within six m a mutual fund after it is closed to new investors