You have $15,000 to invest in a mutual fund. You choose a fund with a 3.5 percent front load, a 1.75 percent management fee, and a 0.5 percent 12b-1 fee. Assume, for simplicity, that the management and 12b-1 fees are charged on year-end assets. The gross annual return on the fund's shares was 12.50 percent. What was your net annual rate of return to the nearest basis point? a. 9.97% b. 6.12% c. 9.25% d. 5.42% e. 8.56%

Q: A year​ ago, an investor bought 400 shares of a mutual fund at ​$7.52 per share. This​ year, the…

A: Given: Particulars Amount Number of shares 400 Price per share $7.52 Dividend $0.77…

Q: You are considering an investment in a mutual fund with a 3% front-end load and an expense ratio of…

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

Q: An open-end fund has a net asset value of $10.20 per share. It is sold with a front-end load of 4%.…

A: Open-end funds are those funds that issues or redeems its shares at net asset value.

Q: The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses…

A: The term mutual fund refers to the process of polling of money from different investors, and then…

Q: Consider a no-load mutual fund with $200 million in assets and 11 million shares at the start of the…

A: Total assets at the start of year=$200 millionTotal assets at the end of year=$410 millionNumber of…

Q: If a mutual fund's net asset value is $23.90 and the fund sells its shares for $25.50, what is the…

A: Load fee can be computed by taking the variance of selling price and NAV of a mutual fund and then…

Q: You purchased 1,900 shares of the New Fund at a price of $15 per share at the beginning of the year.…

A: Total number of share=1,900 Price per share=$15 Expenses ratio=2.1% Increase in value during the…

Q: Consider a mutual fund with $ 400 million in assets at the start of the year , and 12 million shares…

A: NAV = Mutual fund value / Outstanding share   Return = [ NAV1 - NAV0 + Income Distributions +…

Q: - What was the fund's return, and what was an investor's return?

A: Introduction: The term investor's return can be defined as the impact which is created as a result…

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: d) What are the EOL values? Which of the two funds appears to have more EOL? Which fund would you…

A: EOL refers to the expected opportunity loss. Opportunity loss or regret is the difference between…

Q: onsider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the…

A: …

Q: A year ago, an investor bought 200 shares of a mutual fund at $9.50 per share. Over the past year,…

A: HPR=​

Q: Mutual funds charge their clients an “expense ratio” for managing yourfunds. A 1.5% annual expense…

A: The future value is the future worth of cash flow at a certain rate of interest after a certain…

Q: You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund…

A: A hedge fund is a particular kind of investment fund that collects money from numerous investors and…

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

A: Mutual Funds:A mutual fund is an investment vehicle made up of a pool of funds collected from many…

Q: Consider a no-load mutual fund with $457 million in assets and 12 million shares at the start of the…

A: The question is based on the concept of mutual fund

Q: Mutual Fund A charges an annual management fee of 2.38% of money under management. The corresponding…

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

Q: The offering price of an open-end fund is $19.70 per share and the fund is sold with a front-end…

A: Offering price is the price at which securities are offered to general public through underwriters.…

Q: portfolio value). The fund's fee structure has a high watermark feature. What are the total fees you…

A: A hedge fund is a type of investment fund that pools money from multiple investors and employs…

Q: You invested $1,100,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the…

A: Assets under management = $1,100,000Loss in year 1 = 11%Gain in year 2 = 19%Fee structure = 2/20…

Q: Calculate the NAV for a mutual fund with the following​ values:   Market value of securities held in…

A: The formula to compute net asset value as follows:

Q: If a mutual fund's net asset value is $23.70 and the fund sells its shares for $25.30, what is the…

A: NAV = $23.70 Selling Value =$25.30

Q: You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund…

A: Hedge funds are often managed by qualified portfolio managers or investment advisors who employ a…

Q: A mutual fund has a portfolio worth $3.2 million consisting of 50,000 shares of company "A" at a…

A: In finance, the term "portfolio" represents a collection of different investment securities such as…

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

A: In order to invest in mutual fund, the investor has to pay the front end load fees. Such fees are…

Q: If a mutual fund's net asset value is $24.00 and the fund sells its shares for $25.20, what is the…

A: load fee as a percentage of net asset value =( (sale value of share - net asset value)/ net asset…

Q: An investor is evaluating the historical performance of an investment fund. The following annual…

A: Annual returns can be found by dividing the fund value of current year from the fund value of the…

Q: A year ago, an investor bought 100 shares of a mutual fund at $7.50 per share. This year, the fund…

A: No. of Shares Purchased=100 shares The purchase price per share = $7.50 The dividend per share…

Q: An investor wants to invest $300,000 in a portfolio of three mutual funds. The annual fund returns…

A: Comparing the two investment strategies:The investment strategy in part b yields a higher mean…

Q: You are considering investing in a mutual fund. The fund is expected to earn a return of 19.0…

A: Given, Expected return= 19% Standard deviation = 10.3%

Q: You invest $100,000 in a hedge fund with a 2/20 fee structure. For the next 3 years, the hedge fund…

A: Investment value= $100,000Annual returnsYear 1= 25.93%Year 2= -10.62%Year 3= 64.83%Fee structure=…

Q: You invested $25,000 in a mutual fund at the beginning of the year when the NAV was $33.16. At the…

A: Rate of return for mutual fund holders can be calculated by using equation below

Q: A year ago, an investor bought 100 shares of a mutual fund at $7.64 per share. This year, the fund…

A: Initial Investment = 100 shares * $7.64 per share = $764Income = 100 x (0.71 +0.52) = $123Ending…

Q: The Wildwood Fund sells Class A shares with a front-end load of 3.5% and annual operating expenses…

A: The question is based on the concept of business finance

Q: If you have a 5.75% back-load charge and you invest $4,000, how much of this money will be invested…

A: There are two main types of fees or charges applicable in case of mutual funds.They are back load…

Q: You invested $90,000 in a mutual fund at the beginning of the year when the NAV was $54.3. At the…

A: Mutual fund is created by accumulating funds from different small investors. Such collection is…

Q: A no-load fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.8%. Assumes the…

A: To determine how much the fund shares will be worth after 5 years, it must consider the impact of…

Q: . Impacts of Costs on Returns. A mutual fund has a 1.6% expense ratio and begins with a $124.655…

A: A mutual fund is an investment vehicle that pools money from multiple investors to invest in a…

Q: what would be the​ HPR?

A: Holding period return (HPR) is the return which is earned by the company by holding a security for a…

Q: The offering price of an open-end fund is $16.70 per share and the fund is sold with a front-end…

A: Open-end funds are those funds that issues or redeems its shares at net asset value.

Q: The Swadhinota open end mutual fund is being sold for Tk.47.85 per share. The fund includes Tk.540…

A: Fund NAV = (Securities & Assets Owned by funds - Fund Liabilities) / Number of shares…