Parity pricing is defined as the average annual management fee charged by funds (theres a different parity pricing for actively managed funds and for passively managed funds). There are four investment funds in the market. Heres the list: . GILKOs Prudent Selection. Investment style: the fund seeks to identify low-risk companies that pay high dividends, and that may or may not be included in stock indexes. Annual management fee: 2.0% . PM Stanleys Growth Replication Index Fund. Investment style: the fund seeks to replicate the Nasdaq-100 Index of high-growth companies. Annual management fee: 0.10% . Salignac Gestions Opportunities Fund. Investment style: based on the stock selection carried out by the managers, the fund seeks to outperform the Standard&Poors500 Index by more than 15%. Annual management fee: 2.5%. . Broadman Sachss Global Stock Tracker. Investment style: the managers of the fund buy exactly the same stocks that make up the Bloombergs Global Stock Index. Annual management fee: 0.3% QUESTIONS (1) Calculate Parity Pricing for passively managed funds. (2) Compare Salignac Gestions Opportunities Fund and PMStanleys Growth Replication Index Fund from a cost perspective over a 20-year horizon, assuming a $10,000 initial investment, and annual returns of 10% for each of the funds. Calculate future values under both scenarios and the hypothetical percentage difference in the value of the holdings after ten years. (3) You work for a fund management company that plans to launch an actively managed fund with a so-called Quality Pricing strategy. What is the annual management fee of this fund if it plans to charge 0.75% above Parity Pricing?