Answered step by step
Verified Expert Solution
Question
1 Approved Answer
b. Joseph needed $50,000 to pay for the unexpected medical bills. To get $50,000, he decided to sell some of his shares in the Gold
b. Joseph needed $50,000 to pay for the unexpected medical bills. To get $50,000, he decided to sell some of his shares in the Gold Finger Mutual Fund. The Gold Finger Mutual Fund has no front-end load but it does charge a contingent deferred sales load (B Fund) for any withdrawals in the first five years according to the following fee table: First year 5% withdrawal fee Second year 4% withdrawal fee Third year 3% withdrawal fee Fourth year 2% withdrawal fee Fifth year 1% withdrawal fee If Joseph has owned the Gold Finger Mutual Fund for 30 months and decided to make withdrawal of $50,000 to pay for the medical bills, what is the amount of the contingent deferred sales load? Show all your calculations. 3 marks What are the three components of financial returns that an investor may receive from a mutual fund? 4 marks d. One year ago, you bought 500 shares of ABC Mutual Fund for $24 per share. You received an income dividend of $0.20 cents per share and a capital gain distribution of $0.25 cents per share during the past 12 months. The market value of the ABC Mutual Fund is now $26.50 a share. Calculate the rate of return for your investment if you were to sell your ABC Mutual Fund now. Show all your calculations. A marke
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started