ESSEN.OF INVESTMENTS(LOOSE)W/CONNECT<BI>
11th Edition
ISBN: 9781264800919
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
a. 1 year?
b. 3 years?
c. 10 years?
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Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.70%. Economy Fund charges a front-end load of 2%,
but has no 12b-1 fee and has an expense ratio of 0.30%. Assume the rate of return on both funds' portfolios (before any fees) is 6% per
year.
Required:
a. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Mutual Fund
Loaded-Up Fund
Economy Fund
Investment
Values
b. How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Mutual Fund
Loaded-Up Fund
Economy Fund
Investment
Values
please show work and formulas
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.65%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.35%. Assume the rate of return on both funds’ portfolios (before any fees) is 7% per year.
Required:
How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Mutual Fund
Investment Values
Loaded Up Fund
Economy Fund
How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Mutual Fund
Investment Values
Loaded Up Fund
Economy Fund
How much will an investment of $100 in each fund grow to after 11 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Mutual Fund
Investment Values
Loaded Up Fund
Economy Fund
Chapter 4 Solutions
ESSEN.OF INVESTMENTS(LOOSE)W/CONNECT<BI>
Ch. 4 - Prob. 1PSCh. 4 - Prob. 2PSCh. 4 - Prob. 3PSCh. 4 - Prob. 4PSCh. 4 - Prob. 5PSCh. 4 - Prob. 6PSCh. 4 - Prob. 7PSCh. 4 - Prob. 8PSCh. 4 - Prob. 9PSCh. 4 - Prob. 10PS
Ch. 4 - An open-end fund has a net asset value of $10.70...Ch. 4 - Prob. 12PSCh. 4 - The composition of the Fingroup Fund portfolio is...Ch. 4 - Reconsider the Fingroup Fund in the previous...Ch. 4 - Prob. 15PSCh. 4 - Prob. 16PSCh. 4 - Prob. 17PSCh. 4 - Loaded-Up Fund charges a 12b-1 fee of 1% and...Ch. 4 - City Street Fund has a portfolio of $450 million...Ch. 4 - Prob. 20PSCh. 4 - Prob. 21PSCh. 4 - Prob. 22PSCh. 4 - Prob. 23PSCh. 4 - Prob. 24PSCh. 4 - Prob. 25PSCh. 4 - Prob. 26PSCh. 4 - Prob. 27PSCh. 4 - You expect a tax-free municipal bond portfolio to...Ch. 4 - Prob. 29PSCh. 4 - Prob. 30CCh. 4 - Prob. 1WMCh. 4 - Prob. 2WMCh. 4 - Prob. 3WM
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- Loaded-Up Fund charges a 12b-1 fee of 1.00% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.0%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 12% per year. How much will an investment of $1,000 in each fund grow to after: (Round your answers to 2 decimal places.) a. 1 year b. 3 years c. 10 years Loaded-Up Fund Economy Fundarrow_forwardLoaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.5%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds’ portfolios (before any fees) is 12% per year. How much will an investment of $1,000 in each fund grow to after: 1 year 3 years 10 yearsarrow_forwardLoaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.50%. Economy Fund charges a front-end load of 3.0%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 10% per year. Required: How much will an investment of $1,000 in each fund grow to after: Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. a. 1 year b. 3 years c. 10 years Loaded-Up Fund Economy Fundarrow_forward
- Raghubhaiarrow_forwardGROW fund Charges a front end load of 3%, but has no 12B-1 fee an expense ratio of .5%. Assume the rate of return on fund portfolio (before any fees) is 7% per year. how much will an investment of $1000 in the fund grow to after 11 years?arrow_forwardSuppose you consider investing $1,000 in a load fund which charges a fee of 2%, and you expect the fund to earn 14% over the next year. Alternatively, you could invest in a no-load fund with similar risk that is expected to earn 9% and charges a 1/2 percent redemption fee. Which is better and by how much? a. Funds are equal b. Load fund by $32.65 c. Load fund by $50.55 d. No-load fund by $64.55 e. No-load fund by $44.30arrow_forward
- 23. Funds XYZ and ABC have the following as shown below. If you will invest $50,000 and expect a rate of return on both funds 14%, which statement is CORRECT? (*Note that the Back-End load declines by 1% annually) * Fund XYZ Fund ABC Front-End load 0% 6% Back-End Load 5%9* 0% 12B-1 fees 1% 0.75% Expense Ratio 0.5% 0.25% A) Fund ABC is better than Fund XYZ since value of investment in 4 years is greater. B) Fund XYZ is better than Fund ABC since value of investment in 4 years is greater. C) Value of investment of Fund ABC in 6 years $97,851.73 D) B & C E) None of the abovearrow_forwardThe value in pounds of a fund at time t = 0 is V0 = 50, 000. After one year (at t = 1) it has increased to V1 = 51, 500 and at that time £1, 500 is withdrawn. After two years (at t = 2) the fund is worth V2 = 50, 800. (a) Compute the time-weighted rate of return. (b) If the fund is liquidated after two years what is the yield that has been achieved?arrow_forwardA fund starts the year with NAV 46 per share. Over the year, the fund pays out income of 2.5 per share and capital gains distributions of 2.5 per share. Assets in the portfolio grew (shrank) by -0.0025, and an expense ratio of 0.014 is charged at the end of the year.. What is the rate of return on the fund? (Hint: calculate NAV1 first) O 0.0969 O 0.1076 O 0.1002 O 0.0877 O 0.0922arrow_forward
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