5. Comparing loads and fees Karen wants to buy shares in a mutual fund and...
80.2K
Verified Solution
Link Copied!
Question
Finance
5. Comparing loads and fees Karen 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. \begin{tabular}{|l|} \hline 6.38% \\ \hline 8.61% \\ \hline 6.00% \\ 7.78% \\ \hline \end{tabular} Suppose BRRTn charges a commission of 6%. This an example of a relatively low-load fund. If Karen purchases $3,000 worth of BRRTn shares, only $ will actually be invested. This means that the commission-as a percentage of the amount invested-is equal to The mutual fund MinT p is a no-load fund that imposes a on reinvested dividends as well as on the initial investment. Funds that charge this type of fee generally be expected to outperform funds that do not charge these fees. Karen 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 TmRE r charges a deferred sales charge and GMAR r charges a redemption fee, then she is best off investing in which of the following funds? GMAR r MinTp TmRE r BRRTn
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
