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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.

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a. Invest all $15,000 in the stock, buying 100 shares. b. Invest all $15,000 in 1,500 options (15 contracts). c. Buy 100 options
GREYUIT [131]

Answer:

See attached picture.

Explanation:

See attached picture for explanation.

3 0
3 years ago
If a perfectly competitive firm finds that price is less than average variable cost, it should: shut down immediately. increase
Musya8 [376]

Answer: It should shot down immediately.

Explanation:

If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.

4 0
3 years ago
The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet i
tankabanditka [31]

The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled of Long-term liabilities.

What is Long-term liabilities?

Long-term liabilities can be regarded as loans aa well as other financial obligations that the repayment schedule would be expected to last over a year.

Some of the examples long-term liabilities are;

  1. deferred revenues
  2. post-retirement healthcare liabilities.
  3. bonds payable
  4. long-term loans
  5. pension liabilities

It should be noted that balance in Discount on Bonds Payable that has a due time of three years would be reported at Long-term liabilities section.

Learn more about Long-term liabilities at:brainly.com/question/25596583

4 0
2 years ago
Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much inter
Viktor [21]

Answer:

$124,440

Explanation:

Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back

$679 * 30 year * 12 months in a year

= $244,440

With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount

= $244,440 - $120000

= $124,440.

8 0
3 years ago
7. The price of a movie ticket goes from $7.00 to $8.50. What should happen to the demand for these tickets?
lbvjy [14]

Answer: The price increses

Explanation: Goes t0 7.00 to 8.50 increses a 1.50

The demand has went up

4 0
3 years ago
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