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Sloane wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess each fund in terms of the fees each charges. Suppose MajTrk charges a commission of 8%. This $2,000 worth of MajTrk shares, only $ percentage of the amount invested-is equal to Fund PwrSL r QtrF p MajTrkn MRGG r that charge this type of fee can cannot PwrSL MajTrk QtrF MRGG NAV Net Chg. YTD % Ret. 19.77 6.2 18.32 3.3 42.21 9.8 31.81 8.7 8.00% 11.75% 8.70% 10.61% The mutual fund PwrSL is a no-load fund that imposes a is is not 0.13 0.03 0.36 0.27 an example of a relatively low-load fund. If Sloane purchases will actually be invested. This means that the commission-as a only when its shares are sold. Funds deferred sales charge 12b-1 fee generally be expected to outperform funds that do not charge these fees. Sloane is planning on holding her shares for at least a year and wants a fund that will cost her as little in fees as possible. If QtrF charges a 12b-1 fee and MRGG charges a redemption fee, then she is best off investing in which of the following funds? Sloane wants to buy shares in a mutual fund and has narrowed her selection to the following four funds. Answer the questions below to help assess each fund in terms of the fees each charges. Suppose MajTrk charges a commission of 8%. This $2,000 worth of MajTrk shares, only $ percentage of the amount invested-is equal to Fund PwrSL r QtrF p MajTrkn MRGG r that charge this type of fee can cannot PwrSL MajTrk QtrF MRGG NAV Net Chg. YTD % Ret. 19.77 6.2 18.32 3.3 42.21 9.8 31.81 8.7 8.00% 11.75% 8.70% 10.61% The mutual fund PwrSL is a no-load fund that imposes a is is not 0.13 0.03 0.36 0.27 an example of a relatively low-load fund. If Sloane purchases will actually be invested. This means that the commission-as a only when its shares are sold. Funds deferred sales charge 12b-1 fee generally be expected to outperform funds that do not charge these fees. Sloane is planning on holding her shares for at least a year and wants a fund that will cost her as little in fees as possible. If QtrF charges a 12b-1 fee and MRGG charges a redemption fee, then she is best off investing in which of the following funds?
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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