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boyakko [2]
3 years ago
9

You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning of the year. You paid a front-end load o

f 4%. The securities in which the fund invests increase in value by 12% during the year. The fund's expense ratio is 1.2%. What is your rate of return on the fund if you sell your shares at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Mazyrski [523]3 years ago
7 0

Answer:

6.37%

Explanation:

Rate of return

= (Aggregate investment value after one year - Investment value) / investment value   ----- equation 1

Cost of shares =number of shares* price per share

             = 1000* $20 =$20,000

Total amount invested = Purchasing cost /(1- front-end load)

               = $20,000 / (1-0.04)

                =$20,000 / 0.96 = $20,833.333

Investment value after one year

           = Total Investment*( 1+ price increase-expense ratio)

         = $20,000( 1 +0.12 -0.012)

          = $20,000(1.12-0.012) = $20,000 * 1.108 = $22,160

From equation 1 above

Rate of return = ($22,160 - $ 20,833.333) / $20,833.333

        $ 1,326.667 / $ 20,833.333

= 0.06368001701

  = 0.0637

Since rates of return are expressed as %, we multiply the result by 100 to get

  0.0637*100 =6.37%

My rate of return on the fund will be 6.37% if I sell the shares at the end of the year.

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Answer:

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3 years ago
In the short run, a supply shock will _________ the equilibrium level of prices and ___________ the equilibrium level output. re
Taya2010 [7]

Answer: raise; reduce

Explanation:

A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.

Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.

If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.

It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.

Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.

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3 years ago
Managing a healthcare setting today is different than it was 50 years ago. give an example of an ethical situation facing the he
mariarad [96]
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7 0
3 years ago
Managers today need to look past traditional viewpoints in determining the success of their company's strategy. One such approac
bogdanovich [222]

Answer:

The Balanced Scorecard

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Perspective: Customer: This perspective concentrates on things like customer service.

Goal:  Service: This would be the level of customer service.

Measure:  How do our customers see us? Survey: This would be the results of an online customer satisfaction survey.

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Perspective: Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.

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Measure: Can we continue to improve and create value?  Sales: This would be the annual sales figures.

Explanation:

The balanced scorecard which Bryan is developing for KanO Mines helps KanO Mines to understand how to create value in the organization.  With the balanced scorecard as a strategic planning and management tool, organizational goals are communicated to KanO Mines, so that his daily activities are aligned with the organizational strategy.  It also helps him to prioritize his projects, products, and services.  The balanced scorecard does not only deal with perspectives and goals, it also helps KanO Mines and his manager, Bryan, to measure and monitor his progress towards achieving the set organizational strategic goals.

4 0
3 years ago
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madreJ [45]

Answer:

C)  there is at least one fixed factor of production.

<u>Multiple-choice options</u>

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B) the price of extra units of a factor is increasing.

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D) capital is a variable input.

Explanation:

he law of diminishing marginal returns cites that adding extra input while maintaining the others fixed will cause the overall output to decrease . Adding one more production input while keeping the rest intact decreases the marginal returns and increases the average production cost.

The law only applies where there at least one fixed input. When the firm uses more of the variable input, the firm's marginal product will eventually decrease.

6 0
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