If both funds portfolios have an average return

Assignment Help Financial Management
Reference no: EM131825730

Assume that Fund A charges a front-end load of 5%, an expense ratio of 0.7% and no 12b-1 fee. Assume that Fund B charges no front-end load, 12b-1 fees of 0.4% and an expense ratio of 1.1%. If both funds’ portfolios have an average return of 10%, which is the better investment after 10 years given an initial investment of $1,000?

Reference no: EM131825730

Questions Cloud

Calculate the firm current assets and working capital : Calculate the firm's current assets and working capital at April 30.
At what price would you receive margin call : At what price would you receive a margin call?
The central issue in the study of leverage : The central issue in the study of leverage is. The cost of capital is used primarily in.
Identify a quality measure to determine cause of the issue : Identify a quality measure to determine cause of the issue. Explain the rationale for using the quality measure identified in (b) above.
If both funds portfolios have an average return : If both funds’ portfolios have an average return of 10%, which is the better investment after 10 years given an initial investment of $1,000?
Calculate platinum and steel products return on equity : Calculate Platinum & Steel Products's return on equity (ROE) for the year.
Review Problem of The Flying Airlines company : The Flying Airlines company has been operating for five years and is currently in the process of restructuring its operations due to the challenging conditions.
What would be the market mechanism solution : What would be the market mechanism solution and What would be the central planning solution
How ensure that organization is adequately preserving data : How do we ensure that our organization is adequately preserving data? How do we properly identify data sources that may contain information that is pertinent?

Reviews

Write a Review

Financial Management Questions & Answers

  Stock exceed the required return on the less risky stock

Required rate of return Stock R has a beta of 1.3, Stock S has a beta of 0.6, the expected rate of return on an average stock is 12%, and the risk-free rate of return is 7%. By how much does the required return on the riskier stock exceed the require..

  Compute the payback period and accounting rate of return

Compute the payback period and accounting rate of return for this equipment. (Record answers as percents, rounded to one decimal.)

  Find the average annual dividend growth rate

Using Yahoo Finance, find the average annual dividend growth rate for McCormick & Company (MKC) using the last six years of data (note that you will use the dividends of MKC for 2010 – 2015 and will only have five growth rates despite having six year..

  Exporter of expensive electronic equipment

As an Exporter of expensive electronic equipment, you have a substantial investment in the merchandise that you ship.

  Selecting outsourcing partners and negotiating agreements

Do you agree with her philosophy and approach for selecting outsourcing partners and negotiating the agreements?

  Retail margins on the product

Horatio Alger has just become product manager for Brand X. Brand X is a consumer product with a retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Brand X and its direct competitors sell a total of 20 m..

  Human nature to think that ethical behavior

It is human nature to think that ethical behavior is more likely provoked when person is being observed.

  What is the expected dollar return on the gamble

Suppose that a person won the Florida lottery and was offered a choice of two prizes: (1) $500,000 or (2) a coin-toss gamble in which he or she would get $1 million if a head were flipped and zero if a tail. What is the expected dollar return on the ..

  What are the net cash flows of the project for the years

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,310,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life.

  Mature manufacturing firm

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10.65, but management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a sha..

  Cash breakeven point is a production level

Suppose it has been determined that the cash breakeven point is a production level of 5,000 units per year, the accounting breakeven point is a production level of 8,000 units per year, and the financial breakeven point is a production level of 12, 0..

  What is the adjusted basis of the new residence

During 2006, Ted and Judy, a married couple, decided to sell their residence, which had a basis of $162,000. They had owned and occupied the residence for 11 years. To make it more attractive to prospective buyers, they had it painted in April at a c..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd