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Problem 1 Using the below given information, answer the following 3 questions: Funds Alpha and Beta have the following data as shown below: Fund Alpha

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Problem 1 Using the below given information, answer the following 3 questions: Funds Alpha and Beta have the following data as shown below: Fund Alpha Fund Beta Front-End load 0% 5% Back-End Load 7% 0% 12B-1 fees 0.85% 1.2% Expense Ratio 0.15% 0% Note that the Back-End load declines by 1% annually. Mr. Johnson will invest $100.000 and expect a rate of return on both funds 14%. 1. What will be the value of your investment in Fund Alpha and Beta respectively, if the shares are sold after 1 year? O a. S105,090; $107,160 O b. $106,220;$107,160 c. $106,220, $112,800 O d. $105,090;$112,800 O e None of the above 2. What will be the value of your investment in Fund Beta and Alpha respectively, if the shares are sold after 4 years? O a 8153,801.30 $158.155.94 O b. $138,518.11: $136.348.67 O $158,155,94 5166,525 47 d. $ 158,155.94 $153,801.30 e None of the above 3. Which fund optimizes your profit after 8 years? O a. Fund Alpha O b. Fund Beta O c. Both funds provide the same profit after 8 years O d. We don't have enough information to answer this

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