Hidden mutual fund fees include
1. differences in the bid-ask spread
Mutual funds will often purchase securities from dealers at ask prices and sell securities to dealers at bid prices. Ask prices are higher than bid prices. This bid-ask spread represents the dealer’s profits.
Hidden mutual fund fees include 1. differences in the bid-ask spread 2. 12 (b-1) fees 3....
Mutual fund expense ratios include all of the following except? a. Management fees. b. 12b-1 fees. c. Operating expenses. d. Investment losses. Which of the following is not an investment company? a. Closed-end fund. b. ETF. c. UIT. d. CMO.
QUESTION 27 Mutual fund management fees may include: a. Front-end loads. b. Investment advisor fees. c. 12b-1 charges. d. All of the above. QUESTION 28 In January of this year, Colin invested in the Alpha Aggressive Growth & Accumulation Fund (Alpha). The fund had NAV per share of $21.60 in January of this year. On December 31 of the same year, the fund’s NAV was $26.98. Income distributions were $0.90 and the fund had capital distributions of $1.20. What rate...
You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $10,600 investment that does not grow if you cash out after 3 years of no gain?
What is the bid−ask spread? A. the rise or fall in the value of a stock between the time it is acquired by an investor and sold by that investor B. the difference in price available for an immediate sale of a stock and the immediate purchase of the stock C. all of the costs and fees that a stock exchange charges in order to process a transaction D. the difference in the selling price of a stock between different...
QUESTION 39 Management fees and other expenses of open-end mutual funds are least likely to include: a. Front-end loads. b. Back-end loads. c. 12 b-1 charges. d. Tax liabilities. QUESTION 40 Mutual fund fees that cover advertising and promotional literature are typically referred to as: a. Back-end loads. b. Front-end loads. c. Advertising fees. d. 12 b-1 charges.
The NAV of a mutual fund is $10 per share. You invest $100,000 in the fund. The front end load is 2%. The investment return of the fund for the year was 10%. You sell your shares. The redemption fees is 3% and the expense ratio is 4%. What is your return from this mutual fund investment?
You are considering two mutual funds, Fund A and Fund B, which both return 8.75%. Fund A has an expense ratio of 0.70% and 12b-1 fees of 1.80%. Fund B has a front end load of 2.75%, no 12b-1 fees and an expense ratio of 0.21%. The purpose of the investment is to put your brand new baby thru college in 18 years, which is the better choice? Show your work.
A mutual fund sells Class A shares with a front-end load of 6% and Class B shares with 12b-1 fees of 1% as well as back-end load fees that starts at 6% and fall by 1% for each holding year. Assume that the fund return net of operating costs is 11% annually. What will be the value of a $10,000 investment in Class A and B if the shares are sold after (a) 1 year; (b) 4 years, or (c)...
For Stock A, which is traded in a dealer market, the bid-ask spread is 1 dollar. A buy-market order is executed at 60 dollars. A. Will a limit-sell order of 60.5 be executed? If so, in what price? B. Will a limit-buy order of 59.5 be execeuted? If so, in what price? C. Will a market-sell order be executed? If so, in what price?
Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 1.8% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 1 decimal place.) Fall in returns You purchased 1,700 shares of the New Fund at a price of $25 per share at the beginning of the year. You paid...