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In: Finance
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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return must the fund portfolio earn for you to be better off in the
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(b) How does your answer change if you plan to invest for...
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A.
12b-1 charges
B.
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C.
Back-End load
D.
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5.
Brian Griffin selects stocks for his portfolios by actively
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industries. The strategy that Brian is following is called
A.
Bear Spread
B.
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C.
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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...
A mutual fund charges 6% front-end load and 3% operating and
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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
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
VFINX (vanguard 500 index fund)- what are the fund's management
fee, load fee, exit fee, and 12b-1
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
fee, load fee, exit fee, and 12b-1?
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Loaded-Up Fund...
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