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Anna11 [10]
3 years ago
6

You are considering investing in a no-load mutual fund with an annual expense ratio of .6% and an annual 12b-1 fee of .75%. You

could also invest in a bank CD paying 6.5% per year. What minimum annual rate of return must the fund earn to make you better off in the fund than in the CD
Business
2 answers:
Vikentia [17]3 years ago
6 0

Answer:

7.85%

Explanation:

Therefore;

CD paying per year + annual expense ratio + annual 12b-1 fee

6.5 + .06 +.075 = 7.85%

The minimum annual rate of return must the fund earn to make you better off in the fund than in the CD is 7. 85%

aev [14]3 years ago
3 0

Answer:

7.85%

Explanation:

12b-1 fees and management fees (annual expense ratio) represent the annual expenses that the mutual fund managers deduct from your gross returns.  

net return = gross return - annual expense ratio - 12b-1

if you want a net return ≥ 6.5% (given by a CD), then:

6.5% = gross return - 0.6% - 0.75%

gross return = 6.5% + 0.6% + 0.75% = 7.85%

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The answer is your last option: lower-level managers. Hope I helped! :)
7 0
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Why do southeast asian farmers continue to practice slash-and-burn agriculture and shifting cultivation?
vovangra [49]
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4 0
3 years ago
If the central bank targets a monetary​ aggregate, it is likely to lose control over the interest rate because A. of fluctuation
Rom4ik [11]

Answer:

The correct answer is B. of fluctuations in the demand for reserves.

Explanation:

The management of the interest rate is perhaps one of the areas of economic policy that has raised the most controversy among policymakers. Much of it comes from both the interpretation of the role that the interest rate plays in macroeconomic adjustment, and the real possibility of achieving effective control over it.

Regarding the role of the interest rate, there are opposing positions about the influence that this variable may have on that of  termination of savings investment. Thus, for example, from a Keynesian perspective, a weak relationship is raised between saving the interest rate, since it depends primarily on the level of income, while great importance is attached to this variable as a determinant of investment. Under this scheme, control over the interest rate can be justified since it would have the advantage of stimulating economic activity through greater investment, without significantly affecting savings levels.

6 0
3 years ago
On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34,
adoni [48]

Answer:

Jan. 22

Dr Cash $7,140,000

Cr Common Stock $6,300,000

Cr Paid in capital in excess of par $840,000

Feb. 27

Dr Cash $180,000

Cr Preferred Stock $135,000

Cr Paid-In Capital in Excess of Par-Preferred $45,000

Explanation:

Preparation of the entries for January 22 and February 27.

Jan. 22

Dr Cash $7,140,000

(210,000*$34)

Cr Common Stock $6,300,000

(210,000*$30)

Cr Paid in capital in excess of par $840,000

($7,140,000-$6,300,000)

Feb. 27

Dr Cash $180,000

(15,000*$12)

Cr Preferred Stock $135,000

(15,000*$9)

Cr Paid-In Capital in Excess of Par-Preferred $45,000

($180,000-$135,000)

7 0
3 years ago
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