CONNECT WITH LEARNSMART FOR BODIE: ESSE
CONNECT WITH LEARNSMART FOR BODIE: ESSE
11th Edition
ISBN: 2819440196246
Author: Bodie
Publisher: MCG
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Chapter 4, Problem 18PS

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of .75%. Economy Fund charges a front-end load of 25%, but has no 12b-1 fee and an expense ratio of .25%. Assume the rate of return on both funds portfolios (before any fees) is 6% per year. How much will an investment in each fund grow to after: (LO 4-5)
a. 1 year?
b. 3 years?
c. 10 years?

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