PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 13, Problem 2FPE
Summary Introduction
To calculate: The amount payable to purchase the given funds and the fund with 12b-fees, redemption fee funds, no loads fund, the highest year to date return fund and the lowest fund.
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Students have asked these similar questions
If you wish to purchase a mutual fund with low annual fees you should collect information on the of the various funds. O a) MER O b) P/E c) EPS O d) beta
Q1. What is a mutual fund? In what sense is it a financial institution?.
Q2. How is the net asset value (NAV) of a mutual fund determined? What is meant by the term marked-to-market daily?
Q3. An investor purchases a mutual fund for $50. The fund pays dividends of $1.50, distributes a capital gain $2, and charges
a fee of $2 when the fund is sold on year for $52.50. What is the net rate of return from this insurance?
Formula for Question 3:
Net gain = Dividend + capital gain + profit from fund sold – fee
You are considering investing in one of several mutual funds. All the funds under consideration have
various combinations of front-end and back-end loads and/or 12b-1 fees. The longer you plan on remaining
in the fund you choose, the more likely you will prefer a fund with a
rather than (a)__
everything else equal.
a) 12b-1 fee; back-end load
b) front-end load; 12b-1 fee
c) 12b-1 fee; front-end load
d) front-end load; back-end load
e) 12b-1 fee; no load charge
Chapter 13 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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