1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which d
kaheart [24]
Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers-are called wholesalers. These are businesses that  would purchase product in very large amounts and sells them to other businesses or the retailers at a lower price whose target customers are the consumers. 
7 0
3 years ago
What is one difference between a vocational school and on-the-job training?
Gemiola [76]
Vocational classes provide job focus training for specific roles or careers
8 0
3 years ago
Read 2 more answers
What does it mean to say that individuals as a group are net suppliers of funds for financial​ institutions? what do you think t
lana66690 [7]
I don’t know?????ahahah
8 0
3 years ago
Brian owns a company that makes inexpensive replacement parts for bicycles. He's ready to increase the scale of his business and
mina [271]

Answer:

His ads can appear on websites relevant to bicycles, and therefore connect him to his potential audience.

Explanation:

Search engine optimization in marketing involves including keywords in the content so that when users search for materials related to such content, the content would appear among the relevant results. For businesses that want to improve the sales of their products by making use of Google Display Ads, it is important to use keywords as the content of the advertising so that the advertisements can appear on websites relevant to the potential audience.

The main goal of advertising would be defeated if the products are marketed to people who have no interest in them. If Brian's bicycles are marketed on a website containing content for children, it would be difficult for him to make sales. Google Display Ads ensure that the right audience see the advertisements.

3 0
3 years ago
Select the education or qualification that is best demonstrated in each example. Freda interviews a famous local athlete on a te
Usimov [2.4K]

Answer:

communication skills

bachelor's degree

planning and organizational skills

research skills

Explanation:

8 0
3 years ago
Other questions:
  • Boeing has often cut its prices drastically to try to maintain its 60 percent of sales of commercial aircraft as it competes wit
    5·1 answer
  • Wendy was in Walmart and noticed a display with baking items collected together and a little pad with recipes to tear off. She l
    12·1 answer
  • Mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. In addit
    7·1 answer
  • If costs are 85% of sales (and profit is 15%), what is the amount of extra sales needed to equal $1,200 in profit from purchasin
    11·1 answer
  • Some laws prohibit discrimination in employment. These laws promote which of the following primary functions of​ law? A. promoti
    12·1 answer
  • A. treats financial indicators as the sole measurement of performance B. evaluates performance based on organizational participa
    9·1 answer
  • In a perfectly competitive labor market marginal resource cost is: Multiple Choice the market value of the firm's output times t
    13·1 answer
  • N Force, a U.S. car manufacturing company, has expanded its business operations to China. Unlike their U.S. colleagues, many Chi
    10·1 answer
  • On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produci
    11·1 answer
  • The deal your assistant signs calls for the sale of a minimum of260 chairs and up to 450 chairs. The price will be $91 per chair
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!