PLS HELP ASAP ON BOTH Your client, Rinaldo, wants to know more about the fees associated with his mutual funds. What can you tell him about a mutual fund'smanagement expense ratio (MER)?Trailer and brokerage fees are charged separately from the MER.O Mutual fund performance is not impacted by the MER since rates of return are published net of fees.O The MER reflects the percentage of each dollar of fund assets that is used to pay for management services.O Mutual funds are required to calculate the MER on a daily basis. Which of the following money market securities have the highest degree of risk for the investor?O Bankers' AcceptancesCommercial PaperTreasury BillsMunicipal Short-Term Paper

1. It is essential for investors to have a thorough understanding of the various fees that are…

Answered: Your client, Rinaldo, wants to know…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 40P: Many retirement funds charge an administrative fee each year equal to 0.25% on managed assets....

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Similar questions

Discuss the uses of Mutual Funds. a) Diversification of Investments
Many retirement funds charge an administrative fee each year equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest 5,000 in the same stock this year. Alexx invests directly and earns 5 a year. Spenser uses a retirement fund and earns 4.75. After 30 years, how much more will Alexx have than Spenser?
Only typed answer What is a mutual fund? Do mutual funds havesimilar/lower/higher risk than money market accounts?Explain. What types of securities are in a mutual fund?
11. A zero coupon bond is selling for $476. The bond has a face value of $1,000 and matures in 8 years. Your friend asks you if he should buy the bond. He tells you his required return is 9 percent. Would you recommend he buy the bond or not? Explain your answer.
Define asset and liability
Emily and Joel Schumaker 1.Emily and Joel Schumaker are married clients who have just been approved for a twenty-year, $150,000 mortgage. They have been given a choice of two loans. One loan has an annual percentage rate (APR) of 8 percent and does not carry a fee, and the other has an APR of 7.5 percent but carries a discount fee of 2 percent of the initial loan amount. The fee for the second mortgage is payable in cash at loan inception and cannot be financed with the loan. From a present value cost perspective, which loan is the better deal, assuming (a) they sell their home immediately after making ten years’ worth of payments and (b) they require a 9 percent effective annual rate of return? Stated another way, which option has the lower cost? When conducting the analysis, assume all required payments are made at the end of each month and that interest is compounded monthly. Remember to consider the difference in loan payment, the difference in remaining balance at the time of…
Tucker works for a retail distribution company that was recently started. Tucker has invested a lot of his earnings into shares of the company. When quarterly earnings are posted, Tucker receives a check for 8% of the quarterly profit of the company. Tucker belongs to a __________ corporation.
The following table shows the total return and the number of funds for four categories of mutual funds. Excel File: data03-17.xlsx Type of Fund Number of Funds Total Return (%) Domestic Equity 9,191 4.65 International Equity 2,621 18.15 Specialty Stock 1,419 11.36 Hybrid 2,900 6.75 a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals) b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return in part (a)? Discuss. What else might be used for weights? (i) Using "number of funds" as weights will only be a good approximation if the amount invested in various funds is approximately equal. The amount invested in each fund could be used for weights. (ii) Using "number of funds" as weights results in a good approximation regardless of the amount invested in various funds. There is no need to use a different weight. (iii) Using "number of…
11. Case study a. Let's say your friend offer simple investment. You are planning to buy an asset for RM 3350. This investment is very safe. You would sell off the asset in three years for RM 400. You know you could invest RM 335 elsewhere at 10 percent with very little risk. What do you think of the proposed investment?
What will be the total investment cost of shares? Show appropriate calculations.
You have decided to invest in an open-end mutual fund. You are currently looking at a fund-Washington Premier Fund-in your newspaper. The fund is quoted as: Name NAV Net Chg YTD %RET 36.25 0.15 6.95 Assume that today's opening price of Washington Premier Fund equals yesterday's closing price. If you wanted to make your investment first thing this morning, then you should expect to pay for each share of since it Yesterday, each share of sold for $35.95 $43.50 $36.25 $34.44 $0.15 less $0.15 more $6.95 less $6.95 more If you had $8,000 available to invest, you could purchase than it did the day before, and offers a return of 294 368 assesses a 0.15% fee 276 shares of. is a no-load fund charges a 6.95% fee 221 Your evaluation of the Washington Premier Fund is made easier by the fact that: your investment choices are limited. mutual funds are careful to explicitly state their investment objectives. a mutual fund broker will select a customized mix for you. 0.15% 36.25% 6.95% for the year.
What is the relationship between risk and return? What is the significance of this relationship for the investor?

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