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
oee [108]
3 years ago
9

You are considering investing in one of several mutual funds. All the funds under consideration have various combinations of fro

nt-end and back-end loads and/or 12b-1 fees. The longer you plan on remaining in the fund you choose, the more likely you will prefer a fund with a __________ rather than a __________, everything else equal.
Business
1 answer:
viva [34]3 years ago
3 0

Answer:

Front End Load; 12b-1 Fee

Explanation:

An investor in mutual funds will most likely prefer a fund with front end load to one that has a 12b-1 fee.

A front end load is defined as a commission that a person pays upfront when the invest in an asset. Typically the percentage of front end load falls between 3.75 to 5.75%.

On the other hand 12b-1 fee is an annual distribution fee that is paid on mutual funds. It is taken as an operational expense and is between 0.25 to 0.75%. This charge is for promotion activities for prospective investors, and it is debited from old investors.

It is better for a long term investor to opt for the front end load that is paid only one. The 12b-1 fee will be taken everyone there are promotional activities on the asset.

You might be interested in
Which type of account will typically have the highest interest rates
anyanavicka [17]
The correct answer is <span>Certificate of Deposit 

</span>
4 0
3 years ago
Joss is a marketing consultant Iris and Daphne are potential customers interested in commissioning Joss to undertake a market su
Norma-Jean [14]

Answer:

(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.

Explanation:

Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.

8 0
3 years ago
Money ​'M​' and nonmonetary assets ​'NM​' are the only assets available in financial markets.
maksim [4K]

Answer:

Explpanation:

3 0
3 years ago
Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund inv
Ghella [55]

Answer:

Missing word <em>"What is the Rate of return"</em>

a. Asset at the end of the year = (Asset at the start of the year + Increase in value) * 12b-1 charges

Asset at the end of the year = ($219 million+ ($219 million * 7%)) * (1-0.50%)

Asset at the end of the year = ($219 million + $15.33 million) * 0.9950

Asset at the end of the year = $234.33 million * 0.9950

Asset at the end of the year = $233.16 million

Net asset value at the end of the year = Asset at the end of the year / Number of shares

Net asset value at the end of the year = $233.15835 million / 12 million

Net asset value at the end of the year = $19.430

b. Rate of return = (Net asset value at the end of the year + dividend per share - Net asset value at the start of the year) / Net asset value at the start of the year

Rate of return = ($19.430 + ($6 / 12) - $18.250) / $18.250

Rate of return = ($19.430 + $0.50 - $18.250) / $18.250

Rate of return = $1.68 / $18.250

Rate of return = 9.20%

5 0
3 years ago
Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in
aivan3 [116]

Answer:

Answer not available.

Explanation:

I did this equation and i got 5,880, and i do believe that my work is correct but it may not be so.....

7 0
3 years ago
Other questions:
  • Industries are defined by _____.
    11·2 answers
  • Assume a U.S.-based MNC is borrowing Romanian leu (ROL) at an interest rate of 8% for one year. Also assume that the spot rate o
    13·1 answer
  • The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022
    12·1 answer
  • Which of the following applies to the "value of money"?
    6·2 answers
  • Which of the following is an estimating pitfall? Select one: a. Misinterpretation of the statement of work b. Inaccurate work br
    11·1 answer
  • Pelcher Co. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date repr
    13·2 answers
  • To confirm the official requirements for becoming a cosmetologist, you should check with ______________________.
    11·1 answer
  • George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his t
    8·1 answer
  • Thomas Is a financial advisor to a committee seeking to revive the value of the national currency, which has grown weak. He has
    7·1 answer
  • True or False &amp; Why? “Every time price goes up, demand goes up and every time price falls, demand falls too, and so on ad in
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!