Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 4, Problem 19PS
Summary Introduction
(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
Summary Introduction
(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.
Summary Introduction
(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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