Loaded-Up Fund charges a 12b-1 fee of 1.00% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.0%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 12% per year. How much will an investment of $1,000 in each fund grow to after: (Round your answers to 2 decimal places.) a. 1 year b. 3 years c. 10 years www. Loaded-Up Fund Economy Fund
Loaded-Up Fund charges a 12b-1 fee of 1.00% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.0%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 12% per year. How much will an investment of $1,000 in each fund grow to after: (Round your answers to 2 decimal places.) a. 1 year b. 3 years c. 10 years www. Loaded-Up Fund Economy Fund
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Loaded-Up Fund charges a 12b-1 fee of 1.00% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of
2.0%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 12%
per year.
How much will an investment of $1,000 in each fund grow to after: (Round your answers to 2 decimal places.)
a. 1 year
b. 3 years
c. 10 years
Loaded-Up Fund
Economy Fund
Expert Solution
Step 1
There are different types of investment funds that an investor can invest in when investing in financial securities.
Each type of fund has its own set of expenses that it charges to the investors and that it incurs in the course of running the fund.
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