Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.50%. Economy Fund charges a front-end load of3.0%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is10% per year.Required:How much will an investment of $1,000 in each fund grow to after:Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.a. 1 yearb. 3 yearsc. 10 yearsLoaded-Up FundEconomy Fund

The answer is in the explanation.Explanation:For the Loaded-Up Fund:After 1 year: $1,087.50After 3…

Answered: Loaded-Up Fund charges a 12b-1 fee of…

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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Similar questions

(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment B A $ 1,000 2,000 3,000 (4,000) 1,000 4,000 3,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 9 percent? $ End of Year 1 SA NM CO 2 3 4 5 $ 1,000 1,000 1,000 C $ 5,000 a. What is the present value of investment A at an annual discount rate of 9 percent? (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 9 percent? (Round to the nearest cent.) c. What is the present value of investment C at an annual discount rate of 9 percent? (Round to the nearest cent.) 5,000 (5,000) (5,000) 15.000
QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate of return on fund portfolio (before any taxes) is 6% per year. How much will an investment of $1000 in the fund grow to after 10 years?
Project A requires an initial outlayat t = 0 of $1, 000, and its cashflows are the same in Years 1.through 10. Its IRR is 17%, andits WACC is 9%. What is theproject's MIRR? Do not roundintermediate calculations. Roundyour answer to two decimalplaces.
A back load fund has initial load of 5% and it will decline by 1% each year after the initial purchase. If you take your money out at the end of year 3, what is the cost of the load if you invested $10,000 in the fund with initial NAV of $23 and adjusted NAV of $36.8 at the end of year 3?
High Growth Fund has a front load of 5% and expected return of 14.5%. Normal Fund has no load. And expected return of 13.8%. Which fund would you hold if you expect to hold the fund for 5 years? How about holding the fund for 10 years? Please show how to solve in excel
Suppose an individual invests £25,000 in a load mutual fund. The load fund entails an up-front commission charge of 4 percent of the amount invested and is deducted upfront. In addition, annual fund operating expenses are 0.85 percent, which is charged on the average net asset value invested in the fund. The return on this fund is 6 percent each year paid on the last day of the year. What would be the investor’s return on this fund after one year?
Consider an investment fund that starts out with £190,000. After one year, the value of the fund is £203,000. The investor deposits an additional £11,000 to the fund. After a second year, the value of the fund is £207,000. The investor withdraws £41,000. After a third year, the value of the investment fund is worth £177,000. Compute the money-weighted rate of return Enter a percentage correct to 1 decimal place Compute the time-weighted rate of return Enter a percentage correct to 1 decimal place
Vijay

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