The Bull Fund offers three classes of shares for investors. Class A shares charge a 2.00% front-load, 0.00% 12b-1, and 1.00% management fee. Class B shares charge a 1.00% front-load,0.00% 12b-1, and 1.25% management fee. Class C shares have no load and charge 0.75%12b-1, and 0.75% management fee. Assume the expected rate of return (before fees) on thefund is 8% and you intend to invest $10,000. Which class would you prefer if your holdingperiod is three years?DataClass AClass BClass CFront load2.0%1.0%0.0%12b-1 fee0.00%0.00%0.75%Mgt fee1.00%OB, shares, because the value will be $12,127.41OC shares, because the value will be $12,059.50OC shares, because the value will be $12,079.50O B, shares because the value will be $12,197.001.25%0.75%

We need to consider the impact of fees on the overall return. While Class B offers a lower upfront…

Answered: The Bull Fund offers three classes 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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Suppose ABC Mutual Fund had no liabilities and owned only four stocks as follows: Stock Shares Price Market Value 1,100 $1 $12,100 1,300 15 19,500 Y 1,500 24 36,000 800 16 12,800 $80,400 The fund began by selling $54,000 of stock at $9.00 per share. What is its NAV? Do not round intermediate calculations. Round your answer to the nearest cent.
5. Comparing loads and fees Claire wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess each fund in terms of the fees each charges. Fund NAV Net Chg. YTD % Ret. MinT p $15.32 -0.05 2.5 IntRA r $18.77 0.05 5.4 MRGG r $27.81 0.19 7.9 MajTrkⁿ $45.21 0.28 9.0 Suppose MajTrkⁿ charges a commission of 8%. This_________an example of a relatively low-load fund. If Claire purchases $4,000 worth of MajTrkⁿ shares, only $___________will actually be invested. This means that the commission—as a percentage of the amount invested—is equal to . The mutual fund MinT p is a no-load fund that imposes a_________on reinvested dividends as well as on the initial investment. Funds that charge this type of fee _________ generally be expected to outperform funds that do not charge these fees. Claire is planning on holding her shares for at least a year and wants a fund that…
10. A mutual fund has total assets of P680M and total liabilities of P38M. If the company has 545,000 outstanding shares and you plan to invest money worth P1.5M, how many shares .8 should you receive?ulev sosts diiw llid yauaROTTIysb-00thly
You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees, and a 0% back-end load on Class A shares. The same fund charges a 0% front-end load, 1% total annual fees, and a 2% back-end load on Class B shares. What are the total fees in year 1 on a Class B investment of $20,000 if you redeem shares with no growth in value? $600 $902 $596 $885
The text identifies three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock): the CAPM method, the dividend growth method, and the bond-yield-plus-risk-premium method. However, only the CAPM method always provides an accurate and reliable estimate. Group of answer choices True False
An open-end mutual fund owns 1,000 shares of Dunkin Donut priced at $14.20/sh. The fund also owns 2,000 shares of Starbucks priced at $27.50/sh., and 5,000 shares of Gino’s Pizza priced at $12.00/sh. The fund itself has 4,000 of its own shares outstanding. What is the NAV of this mutual fund? A. $12.92 B. $35.80 C. $16.15 D. $17.90 E. $32.30
You own a mutual fund valued at $46 per share. It has a gross return of 8% and an expense ratio of 1.0%. Your share's real worth based upon the given information is . (round to the nearest cent){DO NOT INCLUDE COM Submit
What is the current price per share of the LPEVX mutual fund? 1 2 3 4 5 6 Family/ Fund Symbol NAV Chg YTD % return 3-yr % chg AARP Funds Aggr AAGSX 10.25 0.08 6.2 −1.6 Consrv AACNX 10.55 0.02 4.0 4.0 Mod p AAMDX 10.50 0.05 4.9 1.3 AMF Funds IntMtg ASCPX 4.81 −0.01 0.1 −14.3 LgCpEq IICAX 8.16 0.08 7.5 −2.1 ShtUSGv ASITX 9.36 −0.01 0.2 0.7 UltraShrt p AULTX 5.45 −0.02 3.2 −12.2 UltShrtMtg ASARX 7.39 — 2.4 −4.4 USGvMtg ASMTX 8.64 −0.02 0.2 −0.7 APIEffFrtGrPrim fp APIEffFrtGrPrim fp APITX 8.13 0.10 9.0 −6.5 APIMultIdxPrim APIMultIdxPrim AFMMX 10.98 0.09 4.4 −9.6 AVS LPE Ptf AVS LPE Ptf LPEVX 5.82 −0.01 11.3 NS Aberdeen Fds…
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