Mutual Fund A charges an annual management fee of 2.38% of money under management. The corresponding management fee for Mutual Fund B is 1.65%. On the same invested amount, what percentage more fees will you pay to Fund A than to Fund B? (Round your answer to 2 decimal places.) Percentage = %
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Mutual Fund A charges an annual management fee of 2.38% of money under management. The corresponding management fee for Mutual Fund B is 1.65%.
On the same invested amount, what percentage more fees will you pay to Fund A than to Fund B? (Round your answer to 2 decimal places.)
Percentage = %
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- Calculate the sales charge (in $) and sales charge percent for the mutual fund. (Round percents to one decimal place.) Fund OfferPrice Net AssetValue SalesCharge SalesCharge % Northstar A: MuFl A $13.45 $12.83Calculate the sales charge (in $) and sales charge percent for the mutual fund. (Round percents to one decimal place.) Sales Charge Offer Net Asset Sales Fund Price Value Charge % Northstar A: MUFI A $13.65 $12.83 $ 0.82 X %If a mutual fund's net asset value is $23.70 and the fund sells its shares for $25.30, what is the load fee as a percentage of the net asset value? Round your answer to two decimal places. %
- An investor purchases a mutual fund share for $100.2. The fund pays dividends of $2.2, distributes a capital gain of $1.1, and charges a fee of $3 when the fund is sold one year later for $95.3. What is the net rate of return from this investment? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))7. Impacts of Costs on Returns. A mutual fund has a 1.6% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVS after fees for each year? What are the after-fee returns each year? (LO 4-4) Money to Invest NAV Expense ratio Year 1 return Year 2 return Year 3 return Year 4 return Year 5 return $ 10,000.00 $ 124.655 1.6% 5% -12% 18% 4% 23%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
- Mutual funds can effectively charge sales fees in one of three ways: front-end load fees, 12b-1 (i.e., annual) fees, or deferred (i.e., back-end) load fees. Assume that the SAS Fund offers its investors the choice of the following sales fee arrangements: (1) a 4% front-end load, (2) a 0.50% annual deduction, or (3) a 2% back-end load, paid at the liquidation of the investor's position. Also, assume that SAS Fund averages NAV growth of 11% per year. If you start with $100,000 in investment capital, calculate what an investment in SAS would be worth in three years under each of the proposed sales fee schemes. Which scheme would you choose? Do not round intermediate calculations. Round your answers to the nearest cent. Scheme 1: Scheme 2: Scheme 3: Choose: If your investment horizon were 10 years, would your answer in Part a change? Do not round intermediate calculations. Round your answers to the nearest cent. Scheme 1: Scheme 2: Scheme 3: Choose:Question 1) 401K where m= | + BCE) =d (), 12.t m-1 la) Mutual fund is earning an APR of 9%. (r=.09). What monthly deposit d is needed for a balance 'of 2million dollars in 40years? Show work. b) Assume uour mutual fund is eaning an APR of 107. (r=10). What monthly deposit d is needed for a balance of 2million dollars in 4Ouears? C) Assume your mutual fund is earning an APR of 11% (F=.l1). What monthly deposit is needed for a balance of 2million dollars in 40uears?7. Impacts of Costs on Returns. A mutual fund has a 1.69% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVs after fees for each year? What are the after-fee returns each year?
- D3) Finance You invest in a mutual fund that charges a 3% front-end load, 1% operating costs, and a 1% 12b-1 fees. What are the total fees in year 1 on an initial investment of $20,000 with 10% annual growth in fund's asset value, or NAV? Note that "initial investment" means it is before the deduction of frontend load.Mutual funds can effectively charge sales fees in one of three ways: front-end load fees, 12b-1 (annual) fees, or deferred (back-end) load fees. Assume that the SAS Fund offers its investors the choice of the following sales fee arrangements: (1) a 3 percent front-end load, (2) a 0.50 percent annual deduction, or (3) a 2 percent back-end load, paid at the liquidation of the investor's position. Also, assume that SAS Fund averages NAV growth of 12 percent per year. If you start with $100,000 in investment capital, calculate what an investment in SAS would be worth in three years under each of the proposed sales fee schemes. Which scheme would you choose? If your investment horizon were 10 years, would your answer in part (a) change? Demonstrate.If a mutual fund's net asset value is $23.60 and the fund sells its shares for $25.30, what is the load fee as a percentage of the net asset value?