Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Operating a Fund Fees & Expenses Pioneer Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%. Preserver Fund charges a

Operating a Fund Fees & Expenses

Pioneer Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%.

Preserver Fund charges a front-end load of 2% and an expense ratio of 0.25% but no 12b-1 fee.

Assume the rate of return on both funds portfolios (before any fee) is 6% per year. How much will an investment of $100 in each fund grow to after?

(a). 1 year;

(b). 3 years;

(c). 10 years;

(d). which fee structure design attracts the long-term clients?

can i have more calculation details or reasons? thanks!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investing In Financial Research A Decision Making System For Better Results

Authors: Cheryl Strauss Einhorn, Tony Blair

1st Edition

1501732757, 9781501732751

More Books

Students also viewed these Finance questions

Question

Cite the characteristics of satisfying intimate relationships.

Answered: 1 week ago