Now, it is early $2023.$ Tom is looking back at his investment experience and is trying to learn his lessons! But this time, he decided that the days of picking single stocks are over! And he became too busy to have such an active trading style. This time, Tom wants to try investing his money in a fund and he has a total of $ $1000,000$ to invest after he convinced his wife to invest part of her savings with him. Currently, Tom is considering two alternatives:

$$ alternative A: Bloom open$-$end fund with a net asset value of $$15$ per share and a front$-$ end load of $5\%.$

$$ alternative B: TWE closed$-$end fund with an offering price of $$14$ per share and it is selling at a discount.

$15)$ What is the offering price of the Bloom fund?

a$)$ $$15\mathrm{.}79$

b$)$ $$11\mathrm{.}76$

c$)$ $$16\mathrm{.}25$

d$)$ $$17\mathrm{.}2$

e$)$ $$14\mathrm{.}25$

$16)$ Tom decided to go with the fund that has a lower current offering price. Which fund would he

choose?

a$)$ Bloom

b$)$ TWE

$$ One year later, now it is Dec $31,2023$: the net asset value of the fund that he chose is $$16.$ The fund is now selling at a premium of $9\%.$ And the fund paid year$-$end distributions of income and capital gains of $$1\mathrm{.}40.$

$17)$ If Tom decided to liquidate his investment in this fund now, what would be his rate of return?

a$)24\mathrm{.}28\%$

b$)14\mathrm{.}28\%$

c$)9\mathrm{.}00\%$

d$)34\mathrm{.}57\%$

e$)11\mathrm{.}4\%$

$18)$ About how much will he and his wife have in total after he does so$?$before paying their

taxes$$

a$)$ $$1000,000$

b$)$ $$1,345,714$

c$)$ $$654,300$

d$)$ $$242,800$

e$)$ $$757,200$