A. Stock mutual funds. Use the most recent statutory prospectus (or prospectus) found online at the...

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A. Stock mutual funds. Use the most recent statutory prospectus (or prospectus) found online at the mutual fund company's website for the following mutual funds to complete questions 1-4. It is typically easiest to download a pdf version of the prospectus and then use "[Ctrl] F" (the find function) to search the document.. Fidelity ZERO Total Market Index Fund (ticker: FZROX)... already completed Schwab Total Stock Market Index Fund (ticker: SWTSX)... already completed Vanguard Total Stock Market Index Fund Admiral Shares (ticker: VTSAX) JPMorgan Large Value Growth - Class A (ticker: OLVAX) JPMorgan Large Value Growth - Class C (ticker: OLVCX) 1. Mutual funds fees and expenses: Shareholder fees Maximum front-end load Maximum back-end load Annual fund operating expenses Management fees 12b-1 distribution fee Other expenses Acquired fund fees/expenses Fee waivers and/or expense reimbursements Total annual fund operating expenses Notes: NA is not applicable. 3. FZROX SWTSX VTSAX OLVAX OLVCX ............ -2 Contributions $85,000 Value of account $85,000 0 0 ------- 0 0 0 NA 0 0.00% 0 0 2. Assume David invests $10,000 in each of the three mutual funds listed below for exactly one year, each fund earns a 5 percent return for the year, and David does not sells the shares at the end of the year. Search the prospectus to find the dollar figures reported in the expenses example and report the fees and expenses David would have paid for each fund. Note the dollar figures are reported in the prospectus example so you do not need to calculate them. 0.03% 0 0 NA 0 0.03% VTSAX OLVAX OLVCX SO $94,000 Fees and expenses ($) Assume David owns the three mutual funds listed below. David has a balance of $100,000 in each fund at time zero, each fund earns a 0 percent return over the next year, and David did not sell any shares during the year. Assume David contributed $85,000 two years ago and his account has grown to $100,000 at time zero... i.e., there were no contributions to the fund during the current year (years 0 to 1). The timeline below illustrates this word problem. USING YOUR ANSWER TO QUESTION 1, calculate and report the fees and expenses David would have paid for each fund over the one-year period (year 0 to 1). Assume the annual operating expenses are paid on the last day of the year. -1 0 r = 0% 1 $0 --------- $0 $100,000 Fees and expenses ($) 4. Stock market returns and the rule of 72 Complete the following table. a. b. VTSAX (return before taxes) OLVAX (return before taxes) OLVCX (return before taxes) 1-year B. Target Date Funds and Bond Funds. VTSAX OLVAX OLVCX Read up on the "Rule of 72" at the Investopedia website. How many years would it take to quadruple $25,000 to $100,000 using the "Rule of 72" and the 10-year average annual return for VTSAX? Show your work. Portfolio composition (%) Stocks/equity (domestic and international) Bonds and other (domestic and international) Total Average annual returns 5-year Net expense ratio (Gross expense ratio) 1. Complete the following table. You can report the information from the mutual fund company's website... it does not need to come from the mutual fund's prospectus. 2065 target date funds - asset allocations, expenses, and sale charges of Vanguard, Schwab, Fidelity, and Invesco (ticker symbol in parentheses) Vanguard (VLXVX) 89 11 100 0.08% (0.08%) Schwab (SWYOX) none -------- 10-year 97 3 100 0.08% (0.13%) Max sales charge (commission) Notes: 1. Checkpoints are as of 1/13/2023 and may differ from more recent data. 2. Portfolio composition figures are rounded to nearest percent. none Fidelity FELJO 100 Invesco (PKRAX) ........ 100 2. Credit quality, duration, and asset allocation - complete the following table and then use this information to answer the questions. You can report the information from the mutual fund company's website... it does not need to come from the mutual fund's prospectus. Vanguard bond mutual funds (ticker symbol is in parentheses) Distribution by credit quality (% of fund) U.S. government AAA, AA, A, BBB BB, B, CCC or lower NR (not rated and other) Expense Ratio Short- term (VBIRX) 68 32 0 0 0.07% $65.5 2,623 Intermediate- term (VBILX) 2.6 years 4.50% 58 42 0 0 0.07% Long- term (VBLAX) $33.3 2,120 Total bond market (VBTLX) 67 33 0 0 0.05% Characteristics Fund total net assets (billions) Number of bonds Average duration 6.3 years Yield to maturity 4.40% Notes: 1. Checkpoints are as of 1/13/2023 and may differ from more recent data. 2. Distribution by credit quality figures are rounded to nearest percent. Between VBIRX, VBILX, and VBTLX, which bond fund has the most default risk? Explain your answer. $317.1 10,366 6.5 years 4.50% High-yield corporate (VWEAX) Which of the five bond funds has the most default risk? Explain your answer. Which of the five bond funds has the least interest rate risk? Assume duration is a measure of interest rate risk where a higher duration equals higher interest rate risk. A. Stock mutual funds. Use the most recent statutory prospectus (or prospectus) found online at the mutual fund company's website for the following mutual funds to complete questions 1-4. It is typically easiest to download a pdf version of the prospectus and then use "[Ctrl] F" (the find function) to search the document.. Fidelity ZERO Total Market Index Fund (ticker: FZROX)... already completed Schwab Total Stock Market Index Fund (ticker: SWTSX)... already completed Vanguard Total Stock Market Index Fund Admiral Shares (ticker: VTSAX) JPMorgan Large Value Growth - Class A (ticker: OLVAX) JPMorgan Large Value Growth - Class C (ticker: OLVCX) 1. Mutual funds fees and expenses: Shareholder fees Maximum front-end load Maximum back-end load Annual fund operating expenses Management fees 12b-1 distribution fee Other expenses Acquired fund fees/expenses Fee waivers and/or expense reimbursements Total annual fund operating expenses Notes: NA is not applicable. 3. FZROX SWTSX VTSAX OLVAX OLVCX ............ -2 Contributions $85,000 Value of account $85,000 0 0 ------- 0 0 0 NA 0 0.00% 0 0 2. Assume David invests $10,000 in each of the three mutual funds listed below for exactly one year, each fund earns a 5 percent return for the year, and David does not sells the shares at the end of the year. Search the prospectus to find the dollar figures reported in the expenses example and report the fees and expenses David would have paid for each fund. Note the dollar figures are reported in the prospectus example so you do not need to calculate them. 0.03% 0 0 NA 0 0.03% VTSAX OLVAX OLVCX SO $94,000 Fees and expenses ($) Assume David owns the three mutual funds listed below. David has a balance of $100,000 in each fund at time zero, each fund earns a 0 percent return over the next year, and David did not sell any shares during the year. Assume David contributed $85,000 two years ago and his account has grown to $100,000 at time zero... i.e., there were no contributions to the fund during the current year (years 0 to 1). The timeline below illustrates this word problem. USING YOUR ANSWER TO QUESTION 1, calculate and report the fees and expenses David would have paid for each fund over the one-year period (year 0 to 1). Assume the annual operating expenses are paid on the last day of the year. -1 0 r = 0% 1 $0 --------- $0 $100,000 Fees and expenses ($) 4. Stock market returns and the rule of 72 Complete the following table. a. b. VTSAX (return before taxes) OLVAX (return before taxes) OLVCX (return before taxes) 1-year B. Target Date Funds and Bond Funds. VTSAX OLVAX OLVCX Read up on the "Rule of 72" at the Investopedia website. How many years would it take to quadruple $25,000 to $100,000 using the "Rule of 72" and the 10-year average annual return for VTSAX? Show your work. Portfolio composition (%) Stocks/equity (domestic and international) Bonds and other (domestic and international) Total Average annual returns 5-year Net expense ratio (Gross expense ratio) 1. Complete the following table. You can report the information from the mutual fund company's website... it does not need to come from the mutual fund's prospectus. 2065 target date funds - asset allocations, expenses, and sale charges of Vanguard, Schwab, Fidelity, and Invesco (ticker symbol in parentheses) Vanguard (VLXVX) 89 11 100 0.08% (0.08%) Schwab (SWYOX) none -------- 10-year 97 3 100 0.08% (0.13%) Max sales charge (commission) Notes: 1. Checkpoints are as of 1/13/2023 and may differ from more recent data. 2. Portfolio composition figures are rounded to nearest percent. none Fidelity FELJO 100 Invesco (PKRAX) ........ 100 2. Credit quality, duration, and asset allocation - complete the following table and then use this information to answer the questions. You can report the information from the mutual fund company's website... it does not need to come from the mutual fund's prospectus. Vanguard bond mutual funds (ticker symbol is in parentheses) Distribution by credit quality (% of fund) U.S. government AAA, AA, A, BBB BB, B, CCC or lower NR (not rated and other) Expense Ratio Short- term (VBIRX) 68 32 0 0 0.07% $65.5 2,623 Intermediate- term (VBILX) 2.6 years 4.50% 58 42 0 0 0.07% Long- term (VBLAX) $33.3 2,120 Total bond market (VBTLX) 67 33 0 0 0.05% Characteristics Fund total net assets (billions) Number of bonds Average duration 6.3 years Yield to maturity 4.40% Notes: 1. Checkpoints are as of 1/13/2023 and may differ from more recent data. 2. Distribution by credit quality figures are rounded to nearest percent. Between VBIRX, VBILX, and VBTLX, which bond fund has the most default risk? Explain your answer. $317.1 10,366 6.5 years 4.50% High-yield corporate (VWEAX) Which of the five bond funds has the most default risk? Explain your answer. Which of the five bond funds has the least interest rate risk? Assume duration is a measure of interest rate risk where a higher duration equals higher interest rate risk.

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A Stock Mutual Funds 1 Mutual Funds Fees and Expenses Mutual Fund Shareholder Fees Maximum FrontEnd Load Maximum BackEnd Load Annual Fund Operating Expenses Management Fees 12b1 Distribution Fee Other ... View the full answer