Suppose you consider investing $1,000 in a load fund which charges a fee of 2%, and you expect the fund to earn 14% over the next year. Alternatively, you could invest in a no-load fund with similar risk that is expected to earn 9% and charges a 1/2 percent redemption fee. Which is better and by how much?   a. Funds are equal   b. Load fund by $32.65   c. Load fund by $50.55   d. No-load fund by $64.55   e. No-load fund by $44.30

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A: Front end load = 3%Expense ratio = 0.6%CD interest = 5%To find: The return on a mutual fund that…

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A: The Time Weighted Rate of Return (TWRR) measures how well an investment grows over time, ignoring…

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A: Profitability means receiving excess funds over the investment amount. It is an additional gain…

Q: An investor has ​$80,000 to invest in a CD and a mutual fund. The CD yields 6​% and the mutual fund…

A: Mutual Fund :— A mutual fund is a professionally managed investment fund that pools money from many…

Q: You are considering an investment in a mutual fund with a 4% load and an expense ratio of .5%. You…

A: a) Let ‘r’ be the annual rate of return in the mutual fund. With an expense ratio of 0.5% and a load…

Q: What is the present value of investment of A, B, and C at an annual discount rate of 20 percent?

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Q: Q12) Fund Performance and Returns An investor plans to invest $10,000 into one of three portfolios:…

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Q: d. You are given two investment alternatives to analyse. The cash flows from these two instruments…

A: The present value of the annuity factor is used when there is an equal series of cash flows and the…

Q: What is the equivalent average annual effective rate of interest over 5-year period if the fund…

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Q: You must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.85 percent…

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Q: You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.5%. You…

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A: A mutual fund is a type of investment, People invest money in the mutual fund. And earn dividends,…

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Q: f you plan to invest for 5 years, what annual rate of return (i.e. gross ret) must the fund…

A: Information Provided: Expense Ratio = 0.5% CD interest = 3.5% Load of mutual fund = 4.5%

Q: GROW fund Charges a front end load of 5%, but has no 12B-1 fee an expense ratio of .25%. Assume the…

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Q: the on the portfolio (gross of fees). However, Pinnacle offers several classes of funds. Therefore,…

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Q: You invest 2000 into a fund at time 0 and an additional 1000 at time 1. The investment period is 2…

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A: Cash flows are determined for each period and then internal rate of return is calculated for money…

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A: Here,

Q: You want to achieve an expected annual return of 12% by investing in a risky fund that generates 20%…

A: Calculation of Proportion of budget invested in Risky Fund:Assuming the proportion of budget…

Q: PLEASE DO NOT GIVE ME THE WRONG ANSWER  MAKE SURE THE RIGHT ANSWER IS GIVEN

A:

Q: Suppose you have a medium risk-tolerance, and you want an annual return of $355.  You decide to…

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Q: An investor purchases a mutual fund for $60. The fund pays dividends of $1.20, distributes a capital…

A: A mutual fund is a company that pools money from many investors and invests the money in securities.

Q: Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.90%. Economy Fund…

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Q: O A. $10,135.48 O B. S10,461.75 O C. $10,578.92 O D. $10,556.23 O E. S10,337.46

A: investment =10000 Rate of return =11% Expenses =5.75+1.25=7%

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Q: ou are considering an investment in a mutual fund with a 5% load and an expense ratio of 0.5%. You…

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Q: Suppose you are considering investing $1,000 in a load fund that charges a fee of 7%, and you expect…

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Q: Consider an investment fund that starts out with £160,000. After one year, the value of the fund is…

A: Here,

Q: Investment X offers to pay you $7,500 per year for 9 years, whereas Investment Y offers to pay you…

A: Investment XCash Flow = CFx = $7500Time = tx = 9 YearsInvestment YCash Flow = CFy = $10200Time = ty…

Q: Simple interest of i= 4% is being credited to a fund. In which period, n, is this equivalent to an…

A: Effectiive rate, in = 2.5% = 0.025Simple interest, i =4% =0.04n=?

Q: (Present value of an uneven stream of payments) You are given three investment alternatives to…

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Q: 23. Funds XYZ and ABC have the following as shown below. If you will invest $50,000 and expect a…

A: Answer: B & C Solution: Value of Investment = Investment×(1-front end load)×(1+r-true expense…

Q: 4. ( s) Fund A earns interest at a simple rate of i% a year. $P is invested in fund A. (a) What is…

A: Simple Interest: An investment is said to earn a simple interest if the interest is computed on the…

Q: You invest $1000 dollars in a mutual fund with a 2% front-end load, and an expense ratio of 0.5%. If…

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Q: Simple interest of i = 5% is being credited to a fund. In which period (n) is this equivalent to an…

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Q: (Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three…

A: Discount rate = r = 25%

Q: You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in…

A: Present value is the sum of future cashflows

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Q: Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay…

A: Solution for Present Value (PV) of Investments X and YWe will solve this using both Excel formulas…