You are considering an investment in a mutual fund with two share classes, A and B. Class A has back-end load that start at 4% and fall by 1% for each full year the investor holds the portfolio (until the fourth year) and management fee of 0.5%. Class B has no load but has management fee of 0.5% and 12b-1 fee of 1%. Suppose the gross return of this fund is a constant 10% per year. If you plan to invest for 2 years, your holding-period return from the two share classes would be
17.5% and 17.7%
15.1% and 17.7%
17.5% and 18.8%
15.1% and 18.8%
None of the above options is correct.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are considering an investment in a mutual fund with two share classes, A and B. Class A has back-end load that start at 4% and fall by ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users.
Answers (1)
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $100,000 in the current year. It also declared and paid dividends on common stock in the amount of $2 per share.
Answers (1)
With the prevalence of internet capable devices, it has been said that this is the most connected generation in the world. Give a positive and a negative impact of technology on society.
Answers (1)
An agent who buys and sells securities from inventory is called a: 1) broker. 2) commission broker. 3) floor broker. 4) floor trader. 5) dealer.
Answers (1)
An asset is acquired using a noninterest-bearing note payable for $100,000 due in two years. Management records the purchase with a debit to the asset for $100,000 and a credit to notes payable for $100,000.
Answers (1)
New Questions in Business
What causes changes from one phase of the business cycle to another?
Answers (1)
Worthy Ships initially issued 400,000 shares of $1 par stock for $2,000,000 in 2021. In 2023, the company repurchased 40,000 shares for $400,000. In 2024. 20,000 of the repurchased shares were resold for $320,000.
Answers (1)
A new mall will be constructed in a large city. Why are business owners most likely viewing a topography map before construction? a. to find flat areas of land for building b. to identify key landforms in the area c.
Answers (1)
True or False? An environmental office is one that is concerned with managing resources so these resources do not negatively affect the environment.
Answers (2)
Bruno's stock should return 14 percent in a boom, 11 percent in a normal economy, and 4 percent in a recession. The probabilities of a boom, normal economy, and recession are 8 percent, 90 percent, and 2 percent, respectively.
Answers (1)