Use the following information for parts A to C.

Nick is considering investing in Wise Japan Equity Fund. The fund aims to achieve a higher return than the average return of the Japanese stock market. The fund allows Nick to choose one of the following two fee structures, Option A and Option B.

Option A: Subscription fee: 5.5%

Option B: Redemption fee: 5%

Nick would like to invest $100,000. He expects the fund to achieve a 10% rate of return next year. Then he will sell the fund.

1. With his expectation of the 10% rate of return, would Option A or Option B give Nick a higher net profit (after paying the fee) in dollar amount one year later? Explain.
2. What financial assets does Wise Japan Equity Fund most likely invest in?
3. Nick is also considering investing in Hang Seng Index Fund. Compare to the Wise Japan Equity Fund which fund will charge a higher annual management fee? Explain.

   Use the following information for parts D to E.

   Mr. Oliver bought 5,000 shares of Giant Group stock at $35 per share one month ago. The stock paid a dividend of $1.8 per share. After receiving the dividend, Mr. Oliver sold all the stocks at $31 per share today.
4. Calculate the annual percentage rate (APR) of Mr. Olivers investment return rate.
5. Calculate the effective annual rate (EAR) of Mr. Olivers investment return rate.