90.2K

Verified Solution

Link Copied!

The World Income Appreciation Fund has current assets with a market value of $10.1 billion and has 440 million shares outstanding, and a current market price quotation of $25. Calculate the front-end load.(Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Front-end load

%

You invested $75,000 in a mutual fund at the beginning of the year when the NAV was $49.81. At the end of the year the fund paid $0.55 in short-term distributions and $0.74 in long-term distributions. If the NAV of the fund at the end of the year was $53.66, what was your return for the year? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return for the year

%

You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.9 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 1 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 3 percent during 2010, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 1.61 percent, what is your total return from this investment?(Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Total return

%

You are going to invest in a stock mutual fund with a 4 percent front-end load and a 1.69 percent expense ratio. You also can invest in a money market mutual fund with a 3.5 percent return and an expense ratio of 0.3 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon is 9 years?(Round your answer to 2 decimal places. Omit the "%" sign in your response.)

2 years	%
9 years	%

Suppose youre evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.4 percent. The second fund buys only taxable, short-term commercial paper and yields 5.9 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3.1 percent. If you are a New Jersey resident, your federal tax bracket is 35 percent, and your state tax bracket is 8 percent.

1.	Calculate the aftertax yield for each of the alternatives. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Aftertax yield
Municipal fund	%
Taxable fund	%
New Jersey municipal fund	%

2.	Which of these three MMMFs offers you the highest aftertax yield?

(Click to select)Taxable FundNew Jersey FundMunicipal Fund

Answer & Explanation Solved by verified expert

See Answer