a. Fund A has a front-end load of 5.75%. You are considering an investment of $30,000. How much will you pay in commissions and how much will be invested for you after commissions? (You must show your calculations for credit). Amount of commission paid Amount invested after commission Calculations: 3. Index funds offer you the opportunity to invest at a lower annual expense ratio than actively managed mutual funds. This is because it costs less to run an index fund than it does to run +n actively managed fund. Why does it cost less to run an index fund?

Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...
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a. Fund A has a front-end load of 5.75%. You are considering an investment of $30,000.
How much will you pay in commissions and how much will be invested for you after
commissions? (You must show your calculations for credit).
Amount of commission paid
Amount invested after commission
Calculations:
3. Index funds offer you the opportunity to invest at a lower annual expense ratio than actively
managed mutual funds. This is because it costs less to run an index fund than it does to run
+n actively managed fund. Why does it cost less to run an index fund?
Transcribed Image Text:a. Fund A has a front-end load of 5.75%. You are considering an investment of $30,000. How much will you pay in commissions and how much will be invested for you after commissions? (You must show your calculations for credit). Amount of commission paid Amount invested after commission Calculations: 3. Index funds offer you the opportunity to invest at a lower annual expense ratio than actively managed mutual funds. This is because it costs less to run an index fund than it does to run +n actively managed fund. Why does it cost less to run an index fund?
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