2. XYZ fund is an index fund. The fund has a promising return of 12%...

70.2K

Verified Solution

Question

Accounting

2. XYZ fund is an index fund. The fund has a promising return of 12% per year on average. Assume that an investor invests $1,000,000.
a. If the fund charges no fee, what would be the return after 5,10, and 20 years?
b. If the fund charges front-load fee of 1%, what would be the return after 5,10, and 20 years?
c. If the fund charges end-load fee of 1%, what would be the return if the investor decides to sell the fund after 20 years?

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!
Become a Member

Other questions asked by students