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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An investor has $80,000 to invest in a CD and a mutual fund. The CD yields 8% and the mutual fund yields 7%. The mutual fund requires a minimum investment of $9,000, and the investor requires that at least twice as much should be invested in CDs as in the mutual fund. How much should be invested in CDs and how much in the mutual fund to maximize the return? What is the maximum return? To maximize income, the investor should place $ in CDs and $ in the mutual fund. (Round to the nearest dollar as needed.)
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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 (5) Expected Return 16% 10% Bond fund (B) The correlation between the fund returns is 0.10. Standard Deviation 38% 29% Problem 6-11 (Algo) Suppose now that your portfollo must yield an expected return of 13% and be efficient, that is, on the best feasible CAL. Required: a. What is the standard deviation of your portfolio? (Do not round Intermediate calculations. Round your answer 2 decimal places.) Standard deviation % 1 ง b-1. What is the proportion Invested in the T-bill fund? (Do not round Intermediate calculations. Round your ans to 2 decimal places.) Proportion invested in the T-bill fund % b-2. What is the proportion Invested in each of the two risky funds? (Do not round Intermediate…
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
You purchase a mutual fund for $17.23 The fund's NAV is $17.00 (the load fee was .23 cents). The NAV subsequently rises to $22.00, and you redeem the shares. What is the percentage return on your investment
Please add explanation
You are considering purchasing a no - load mutual fund with an operating expense of .4% and a 12 b-1 expense of .25% . You are also considering purchasing a CD paying 3.0% per year. What minimum annual rate of return must the fund earn to make you better off in the fund versus the CD Group of answer choices 3.65 % 3.0 % 2.35% 3.4%
The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $450 million. It has liabilities of $4 million and 8 million shares outstanding. If the fund sells for $53 a share, what is its premium or discount as a percent of NAV? Multiple Choice
Consider a no-load mutual fund with $325 million in assets and 13 million shares at the start of the year and with $375 million in assets and 14 million shares at the end of the year. During the year investors have received income distributions of $3 per share and capital gain distributions of $0.20 per share. Assuming that the fund carries no debt, and that the total expense ratio is 2%, what is the rate of return on the fund? Multiple Choice 16.95% 17.80% 26.45% The answer cannot be determined from the information given.
You manage a risky portfolio with expected rate of return of 16% and a standard deviation of 28%. The T-bill rate is 3%. Suppose that your client feels that the most she can invest in your portfolio is 60% of her portfolio and she will place the other 40% in a risk-free investment (T-bill. Given this choice, what would be the client's degree of risk aversion, A? 2.51 2.76 O 2.37 2.44
please make the answer clear
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) Bond fund (8) Expected Return 16% 10% The correlation between the fund returns is 0.10. Standard Deviation 32% 23% Required: What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio

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