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James is considering an investment in a no-load mutual fund; the fund charges a 12b-1 fee...
James is considering an investment in a no-load mutual fund; the fund charges a 12b-1 fee of 0.5% per year as well as an operating expense ratio of 1% per year. Alternatively, he can invest instead in a bank saving account paying 7% interest. If he plans to invest for five years, and the mutual fund promise that the fund portfolio will earn 8% per year in the first three years, then what annual rate of return must the fund portfolio earn in year 4 and year 5 for him to be better off in the fund than in the bank saving account? Assume annual compounding of returns.
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jeff jeffy answered 1 year agoRelated Solutions
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A.
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5.
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A.
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B.
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D.
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fund's NAV at the end of the year? (The number of mutual fund
shares outstanding is still 10 million at the end of...
A mutual fund charges 6% front-end load and 3% operating and 12b-1 expenses. At the beginning...
A mutual fund charges 6% front-end load and 3% operating and
12b-1 expenses. At the beginning of the year, the fund has $200
million assets under management and 10 million shares outstanding.
During the year the value of assets held by the fund increases by
10% and the fund receives dividends of $2 million. What is the
fund's NAV at the end of the year? (The number of mutual fund
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A mutual fund charges 6% front-end load and 3% operating and 12b-1 expenses. At the beginning...
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fund's NAV at the end of the year? (The number of mutual fund
shares outstanding is still 10 million at the end of...
VFINX (vanguard 500 index fund)- what are the fund's management fee, load fee, exit fee, and 12b-1
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For VFINX (Vanguard 500 Index Fund), what is the fund's management fee, load fee, exit fee, and 12b-1?
please add a short analysisFor VFINX (Vanguard 500 Index Fund), what is the fund's management
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