1. PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and the expected average...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and the expected average annual return for the next 7 years is 11% annually Vanguard Equity Fund is a no-load fund. Its expected average return for the next 7 years is 10% with annual fees of 1.1%. a. If you hold both investments for 2 years, which one is the better investment? b. You believe PIMCO is a better long-term investment. How long must you hold the PIMCO Fund to achieve higher average annual returns than an investment in Vanguard? 1. PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and the expected average annual return for the next 7 years is 11% annually Vanguard Equity Fund is a no-load fund. Its expected average return for the next 7 years is 10% with annual fees of 1.1%. a. If you hold both investments for 2 years, which one is the better investment? b. You believe PIMCO is a better long-term investment. How long must you hold the PIMCO Fund to achieve higher average annual returns than an investment in Vanguard?
Expert Answer:
Answer rating: 100% (QA)
Solution STEP 1 A Investment means engaging your funds to generate income for ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
What are the benefits of the corporation in comparison with the partnership and proprietorship structures? How is equity treated and reported differently in this structure?
-
You can buy Vanguard s S&P 500 fund with an annual operating expense of 0.18 percent, oryou can buy Morgan Stanley s S&P 500 fund with an annual operating expense of 1.40percent. Given...
-
You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in...
-
Which of the following are valid in a Java file, listed in the order in which they are declared? (Choose two.) A. A package-private class declaration and a public interface declaration B. Two package...
-
Dunn et al. (1999) also classified the phase II sample by gender. In the following table, the entries in columns 37 are the counts from the phase II sample in the categories: Male Non-Case (MNC),...
-
Shenefelt Medical Center wants to dispose of its CAT scan machine. The original cost of the machine was $ 445,000, and depreciation of $ 374,000 has been recorded to date. The purchasing manager is...
-
Petitioner Salman was indicted for federal securities-fraud crimes for trading on inside information he received from a friend and relative-by-marriage, Michael Kara, who, in turn, had received the...
-
During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2014. The following information is available. Instructions(a) Compute the amount...
-
Consider the function f(x) = -x + 5. . - Given the graph of f(x) = x + 5, accurately sketch the graph of y(x) on the same set of axes. (1 mark) Algebraically determine the invariant points as exact...
-
Butler, Inc., operates at capacity and makes wooden playground equipment. Although Butlers swing sets and play forts are a matching set, they are sold individually and so the sales mix is not 1:1....
-
Two weeks after having a mild upper respiratory tract infection, a 14-year-old girl has fever and chest pain. On physicalexamination, her temperature is 37C, pulse is 90/min, respirations are 20/min,...
-
How do lenders usually size the debt in a leveraged buyout?
-
Im writing a critical analysis essay relating back to ethical concerns and need help writing a body paragraph on "The article "Activision Blizzard sued by U.S. government for violating labor laws" ...
-
Briefly define and explain Applicability and Satisfaction as they apply to the legal framework of the Fourth Amendment.
-
Regarding the Private Search Doctrine, how could a person lose the reasonableness of an expectation of privacy? Provide an example, if necessary.
-
1. Prove that, for any set, say A, 05 A. 2. If A has 63 proper subsets, what is JA]. 3. For any non-empty sets A and B, define a function from A to B. 4. Let A, B be sets with (B) = 3. If there are...
-
The Chief Financial Officer at Ford Motor Company is said to usea hybrid-costing system. Define the hybrid-costing system. Explainthe advantages to this company to use this system. I want a 10 page 2...
-
The registrar of a college with a population of N = 4,000 full-time students is asked by the president to conduct a survey to measure satisfaction with the quality of life on campus. The following...
-
Given the lower brokerage costs charged by discount brokers and deep discount brokers, why might an investor choose to use a full service broker?
-
Are all rational investors risk-averse? Do they all have the same degree of risk-aversion?
-
Calculate the realized compound yield for a 10 percent bond with 20 years to maturity and an expected reinvestment rate of 8 percent.
-
This chapter asserts that "building wealth is part of a satisfying life" that is built on a balance between (a) a personal life that reflects your values and goals and (b) financial decisions that...
-
To learn more about "cheap" living, do an Internet search to generate a list of the "top ten tips" for living frugally or saving money. How do the suggested spending and saving practices vary over...
-
As a group project, ask everyone in your class (or other classes) to estimate how much total debt they will have upon graduation using the categories of (a) student loans, (b) cred it cards, and (c)...
Study smarter with the SolutionInn App