Question
In: Finance
ABC Domestic Equity Fund sells two types of share, A+ and B+. A+ shares are sold...
ABC Domestic Equity Fund sells two types of share, A+ and B+. A+ shares are sold with front-end load fee of 5% whilst Type B+ shares are not subject front-end load fee but are charged to investment management fee of 1% per annum as well as exit (back-end load) fee that start at 12% and reduce by 2% for each full year the investor holds the portfolio (until the 6th year). The annual rate of return for both types of share is 15%.
(a) Calculate the value of a Rs 25,000 investment made by investor
Mr Paul Halp in Type A+ shares if the shares are disposed after (i)
one year and (ii) 5 years.
Solutions
Expert Solution
The value of Investment if shares are disposed off at one year.
Reusltant table:
Step 2:
The valuation of investment if it disposed at the end of 5th year.
Resultant tabel:
value of investment at 5th year is $45,228.60
jeff jeffy answered 2 years agoRelated Solutions
ABC Domestic Equity Fund sells two types of share, A+ and B+. A+ shares are sold...
ABC Domestic Equity Fund sells two types of share, A+ and B+. A+
shares are sold with front-end load fee of 5% whilst Type B+ shares
are not subject front-end load fee but are charged to investment
management fee of 1% per annum as well as exit (back-end load) fee
that start at 12% and reduce by 2% for each full year the investor
holds the portfolio (until the 6th year). The annual rate of return
for both types of...
ABC Domestic Equity Fund sells two types of share, A+ and B+
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shares are sold with front-end load fee of 5% whilst Type B+ shares
are not subject front-end load fee but are charged to investment
management fee of 1% per annum as well as exit (back-end load) fee
that start at 12% and reduce by 2% for each full year the investor
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1. Compare the performance of the two equity funds (Fund A and Fund B), based on...
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