
Concept explainers
(A)
Adequate information:
12b-1 fees on Loaded-up fund- 1%
Expense ratio on Loaded-up fund- .75%
Front end load on Economy fund- 2%
Expense ratio on Economy fund- .25%
Return on portfolio of each fund- 6%
To compute:growth in investment of each fund after 1 year
Introduction:
Growth in investment made in mutual fund is represented by the rate of
(B)
Adequate information:
Growth in loaded up fund- 4.25% per annum
To compute:growth in investment of each fund after 3 year
Introduction:
Growth in investment made in mutual fund is represented by the rate of return on portfolio assets after charging expense ratio.
(C)
Adequate information:
Growth in loaded up fund- 4.25% per annum
Growth in economy fund- 5.64% per annum
To compute:growth in investment of each fund after 10 year
Introduction:
Growth in investment made in mutual fund is represented by the rate of return on portfolio assets after charging expense ratio.

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