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5. Comparing loads and fees Karen wants to buy shares in a mutual fund and...

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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

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