You purchased $3,400 worth of shares in a mutual fund that does not have a front-end load. However, there is a back-end load of 5 percent if you sell in the first year, and it decreases one percentage point per year. You sell $800 worth of shares in the third year. How much will your back-end load be?

Q: Ten years after purchasing shares in a mutual fund for $7600, the shares are sold for 11,900. What…

A: The rate of return refers to the minimum return to be earned over an investment by the investors in…

Q: . How much lower will your total return be because of your trades?

A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…

Q: You invest in a mutual fund that charges a 4% front-end load, 2% total annual fees, and a 3%…

A: Given:  Investment Amount = $10,700  Front-end load = 4%  Total annual fees = 2%  Back-end load = 3%…

Q: Suppose you invest $50 each month into a mutual fund. You reinvest distributions. At the end of 5…

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Q: You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you deposit $1,250…

A: Computation:

Q: You buy a stock for $125, receive a dividend of $12 and sell the stock for $95 one year…

A: Dollar return =Closing price - Opening price + Dividend Dollar return = $95 - $125 + $12 Dollar…

Q: Suppose you purchase 500 shares of Blue Acre, which currently trading at $60 per share. Suppose that…

A: Margin trading involves borrowing funds from a broker to purchase securities, such as stocks, bonds,…

Q: Suppose you invest $8,000 in a mutual fund in one year and $9,500 in two years. If the fund pays 7%…

A: Investment The process of investing money in financial assets in order to get a return is called…

Q: is this stock a good buy

A: The constant growth model is a method for valuing the share price of a stock. It calculates the…

Q: You invest in a mutual fund that charges 3.8% front-end load, 0.75% in total annual fees, and a 3%…

A: Front end load is the amount of deduction at the time of purchase and back end load is the charges…

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 are considering investing $900 in Higgs B. Technology Inc. You can buy common stock at $21.95…

A: A convertible bond comes with an option for the investor which allows him to convert the bonds into…

Q: You purchase a stock for $1000 and expect to sell it for $900 after five years but also expect to…

A: The rate of return that an investor is earning from a particular investment in a particular time…

Q: You bought 500 shares of Facebook one year ago. The price was $300 per share. You financed 50% of…

A: Rate of return is calculated by dividing the total profit by the initial investment by the investor.

Q: You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for…

A: ParticularsValuesNumber of shares purchased1000Purchase Price per share$143Selling price per…

Q: Suppose that you opened a margin account (margin requirement = 60%) with your brokerage firm.…

A: STEP 1 The gain or loss of an investment over a given time period, represented as a percentage of…

Q: You invest $ 6,000 in ABC stock . You also borrowed an additional $ 8,000 to increase your…

A: Data given: Own investment                                    = $6,000 Investment from borrowed fund…

Q: Suppose you bought a stock for $ 41.4 per share and you sold it for $ 20.1 after 4 years. The stock…

A: Purchase price = $41.4Sales price = $20.1Period = 4 years

Q: You invest $500 in the stock of a company. The value of the stock decreases 2% each year. Write a…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: You are bullish on Zhu Que, Incorporated. You invest $10,000 of your own money and borrow $10,000…

A: The investor takes a leveraged buy position in a stock. We have to find the (a) number of shares the…

Q: 9 years ago, you purchased shares of stock in a corporation. Between then and now, the stock had a…

A: In stock split, number of shares will increase and market price will decrease because the value of…

Q: You own 2,200 shares. The company plans on issuing a dividend of $0.42 a share at the end of this…

A: Number of shares owned=2200Amount of Dividend this year=$0.42Final liquidating dividend…

Q: You bought $5,000 worth of mutual funds with a redemption fee of 5 percent. If you sell within the…

A: Introduction: Mutual Fund Redemption fees are the fee charged by the mutual fund company from the…

Q: You are considering investing $800 in Higgs B. Technology Inc. You can buy common stock at $25.00…

A: A convertible bond comes with an option for the investor which allows him to convert the bonds into…

Q: Compute the total and annual returns on the described investment.   Six years after buying 200…

A: Given, Number of shares bought 200 Price per share is $50 Sale value $15000

Q: She Goes, Inc., will pay a year-end dividend of $3 per share. Investors expect the dividend to grow…

A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…

Q: You are offered a chance to purchase shares in a new company which sells franchises for MamaC Pizza.…

A: Intrinsic value of share = Annual dividend/required return

Q: If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares…

A: Mutual funds refer to one type of financial vehicle that pools money from many investors and invests…

Q: State your answer as a percentage rounded to 1 decimal place. [Only give the numerical answer. Do…

A: Future value of amount includes the amount being deposited over the period of time and amount of…

Q: You invest $10,000 in a stock and hold the stock for 3 years. Over the 3 year period, your…

A: value of the stock = investment*(1+gm)^3

Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years…

A: The required return on the stock represents the total return earned on the stock. This return is…

Q: If an investor buys shares in a no-load mutual fund for $30 and after five years the shares…

A: The question is based on the concept of Security valuation

Q: What is the “total return” on your investment?  (remember, total return is more than ju

A: Purchase price=$10 selling price $11 dividend paid $1

Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now,…

A: IRR is the break-even rate of return at which the present value of cash flow is equal to the initial…

Q: You have just invested a one -time amount of $4,000 in a stock -based mutual fund. This fund should…

A: Investment = $ 4000 Annual return = 6% Investment period = 28 Years

Q: You bought 70 shares of a mutual fund one year ago for $50 per share. The front-end load is 5…

A: Given: Purchase price = $50 Front end load = 5% Dividend per share = $2 Increase in value = 15%

Q: compound

A: Formula to calculate percentage return: Rate of return = P1 - P0/P0 Rate of return using time value…

Q: Suppose that you purchased a single stock five years ago for $1.22. The stock is now valued at $5.10…

A: n is the number of years (which is 5 years in this case)Ending Value is the final value of the stock…

Q: If an investor buys shares in a no-load mutual fund for $40 and after eight years the shares…

A: The application of interest to a principal balance of a debt is known as compound interest.

Q: You are considering how to invest part of your retirement savings. You have decided to put $500,000…

A: Introduction of return on stocksReturn on stocks refers to the minimum return to be earned over the…

Q: She Goes, Inc., will pay a year-end dividend of $3 per share. Investors expect the dividend to grow…

A: The stock price can be computed using the Gordon growth model.

Q: You own $107,000 worth of Smart Money stock. One year from now, you will receive a dividend of $2.95…

A: A share price refers to the stock price of a particular company. Investors invest in a particular…

Q: if you invested $3,580 in a mutual fund and 14 years later it's worth $9,247, what annual rate of…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: You just purchased a stock for 21.43. If you expect the dividend in one year to be $ 2.25 and you…

A: Answer: Calculation of the price at which you should sell the stock in year 3 so that you will earn…

Q: You invest $150 each month (starting today) into a mutual fund. You reinvest distributions. At the…

A: Rate of return. rate of return =

Q: Compute the total and annual returns on the described investment. Five years after buying 200 shares…

A: Any sum infused into different alternatives available in the market to earn income from it and…

Q: You were offered to buy shares of stock of a newly listed company. You decided to take 300 shares at…

A: Using a Future value formula we can determine the time it takes to double the initial amount when…