You have decided to invest in an open-end mutual fund. You are currently looking at a fund-Washington Premier Fund-in your newspaper. The fund is quoted as: Name n NAV Net Chg 36.25 0.15 YTD %RET 6.95 Assume that today's opening price of Washington Premier Fund equals yesterday's closing price. If you wanted to make your investment first thing this morning, then you should expect to pay for each share of since it Yesterday, each share of sold for $35.95 $43.50 $36.25 $34.44 $0.15 less $0.15 more $6.95 less $6.95 more assesses a 0.15% fee is a no-load fund charges a 6.95% fee than it did the day before, and offers a return of 0.15% 36.25% 6.95% for the year.
You have decided to invest in an open-end mutual fund. You are currently looking at a fund-Washington Premier Fund-in your newspaper. The fund is quoted as: Name n NAV Net Chg 36.25 0.15 YTD %RET 6.95 Assume that today's opening price of Washington Premier Fund equals yesterday's closing price. If you wanted to make your investment first thing this morning, then you should expect to pay for each share of since it Yesterday, each share of sold for $35.95 $43.50 $36.25 $34.44 $0.15 less $0.15 more $6.95 less $6.95 more assesses a 0.15% fee is a no-load fund charges a 6.95% fee than it did the day before, and offers a return of 0.15% 36.25% 6.95% for the year.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:You have decided to invest in an open-end mutual fund. You are currently looking at a fund-Washington Premier Fund-in your newspaper. The fund
is quoted as:
Name
NAV Net Chg YTD %RET
36.25
0.15
6.95
Assume that today's opening price of Washington Premier Fund equals yesterday's closing price. If you wanted to make your investment first thing this
morning, then you should expect to pay
for each share of since it
Yesterday, each share of sold for
$35.95
$43.50
$36.25
$34.44
$0.15 less
$0.15 more
$6.95 less
$6.95 more
If you had $8,000 available to invest, you could purchase
than it did the day before, and offers a return of
294
368
assesses a 0.15% fee
276
shares of.
is a no-load fund
charges a 6.95% fee
221
Your evaluation of the Washington Premier Fund is made easier by the fact that:
your investment choices are limited.
mutual funds are careful to explicitly state their investment objectives.
a mutual fund broker will select a customized mix for you.
0.15%
36.25%
6.95%
for the year.
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